Johnson County, IA: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$1,1802-bedroom FMR, FY2027

$1,0021-bedroom FMR, FY2027

$97,10080% income limit, family of 4 (FY2026)

$121,400Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Johnson County is $1,180 a month, up 3.4% from $1,141 in FY2026. Johnson County belongs to the Iowa City, IA HUD Metro FMR Area FMR area, so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Johnson County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$942	$880	+7.0%	$848 – $1,036
1 bedroom	$1,002	$961	+4.3%	$902 – $1,102
2 bedrooms	$1,180	$1,141	+3.4%	$1,062 – $1,298
3 bedrooms	$1,634	$1,587	+3.0%	$1,471 – $1,797
4 bedrooms	$1,972	$1,914	+3.0%	$1,775 – $2,169

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Johnson County that is typically $1,062 to $1,298 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

Can local renters afford the fair market rent?

$39,683median income of renter households

$1,122Median gross rent, all units

34%Rent-to-income ratio (median rent ÷ median renter income)

56%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $39,683 can afford about $992 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,180 is $188 (18.9%) more than that. To rent a two-bedroom at the FMR, a household needs $47,200 a year under the 30% rule, or $42,480 under the common landlord rule that income must be three times the rent.

Johnson County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$1,122 ±$24
Median income of renter households	$39,683 ±$2,715
Renters paying 30% or more of income (cost-burdened)	56.2% ±3.1
Renters paying 50% or more (severely cost-burdened)	31.4% ±2.2
Renter households (where the share can be computed)	24,732

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$972	$1,122	+15.4%
Median renter household income	$31,343	$39,683	+26.6%
Renters paying 30%+ of income	56.6%	56.2%	−0.4 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

Small Area FMRs by ZIP code (FY2027)

In metro areas HUD also publishes ZIP-level Small Area Fair Market Rents. Housing authorities in designated areas must use them for voucher payment standards; others may opt in. Here the two-bedroom SAFMR ranges from $1,030 to $1,580 depending on the ZIP code.

All 27 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
52203	$800	$870	$1,030	$1,430	$1,730
52227	$800	$870	$1,090	$1,510	$1,820
52228	$1,100	$1,210	$1,580	$2,180	$2,620
52235	$970	$1,030	$1,210	$1,680	$2,020
52236	$800	$870	$1,030	$1,430	$1,730
52240	$1,010	$1,070	$1,260	$1,740	$2,110
52241	$940	$1,000	$1,180	$1,630	$1,970
52242	$990	$1,050	$1,230	$1,710	$2,070
52244	$940	$1,000	$1,180	$1,630	$1,970
52245	$1,060	$1,130	$1,330	$1,840	$2,220
52246	$960	$1,020	$1,200	$1,660	$2,010
52247	$800	$870	$1,030	$1,430	$1,730
52253	$800	$870	$1,030	$1,430	$1,730
52314	$800	$870	$1,030	$1,430	$1,730
52317	$1,050	$1,110	$1,310	$1,810	$2,190
52322	$800	$870	$1,030	$1,430	$1,730
52325	$800	$870	$1,030	$1,430	$1,730
52327	$870	$890	$1,140	$1,480	$1,730
52333	$1,020	$1,090	$1,280	$1,770	$2,130
52338	$930	$990	$1,170	$1,620	$1,960
52340	$1,050	$1,120	$1,320	$1,830	$2,210
52356	$800	$870	$1,030	$1,430	$1,730
52358	$860	$890	$1,160	$1,520	$1,730
52404	$800	$870	$1,080	$1,500	$1,810
52755	$810	$870	$1,030	$1,430	$1,730
52766	$800	$870	$1,060	$1,430	$1,730
52776	$800	$870	$1,030	$1,430	$1,730

Source: HUD FY2027 Small Area FMRs (effective October 1, 2026).

HUD income limits for Johnson County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $121,400 (FY2025: $118,200, +2.7%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$25,500 +2.6%	$29,150 +2.6%	$32,800 +2.7%	$36,400 +2.7%	$39,350 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$42,500 +2.7%	$48,600 +2.7%	$54,650 +2.7%	$60,700 +2.7%	$65,600 +2.7%	$70,450 +2.7%	$75,300 +2.7%	$80,150 +2.7%
Low income (80%)	$68,000 +2.7%	$77,700 +2.7%	$87,400 +2.7%	$97,100 +2.7%	$104,900 +2.7%	$112,650 +2.7%	$120,450 +2.7%	$128,200 +2.7%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.