How much does Section 8 pay for a 2-bedroom in Iowa City?

In the Iowa City, IA metro, the FY2027 two-bedroom Fair Market Rent is $1,180 per month. For illustration, 90% to 110% of that benchmark is roughly $1,062 to $1,298. This is not an adopted payment standard or subsidy quote. ZIP schedules, approved exceptions and Moving to Work rules may differ. Gross rent includes the applicable allowance for tenant-paid utilities.

What are the FY2027 Fair Market Rents in Iowa City?

HUD's FY2027 Fair Market Rents for the Iowa City, IA metro, by bedroom size: studio $942, 1-bedroom $1,002, 2-bedroom $1,180, 3-bedroom $1,634, 4-bedroom $1,972. These are HUD benchmarks, not household subsidy amounts. Confirm whether your agency uses ZIP-based standards and which schedule applies to your unit.

Did Section 8 rent limits change in Iowa City for FY2027?

The two-bedroom Fair Market Rent for the Iowa City, IA metro went from $1,141 in FY2026 to $1,180 in FY2027, an increase of $39 a month. FY2027 Fair Market Rents took effect on October 1, 2026. HUD's effective date does not automatically change a household's assistance. Ask your administering agency which adopted schedule and effective date apply to a new lease, move or reexamination.

How do I apply for Section 8 in Iowa City?

Section 8 in Iowa City is administered by Iowa City Housing Authority, Lone Tree Housing Commission. Each agency has its own application process, waiting lists and preferences. You may apply to more than one agency when eligible lists are open; a listing inquiry is not a voucher application. If you already have a voucher, confirm the receiving agency and any portability requirements for the proposed address.

Section 8 in Iowa City, IA: Rent Limits and Housing Authorities

Iowa City, IA metro area. FY2027 Fair Market Rents, active voucher counts, the housing authorities that run the program here, and whether landlords can legally refuse a voucher. Every figure comes straight from HUD data.

2-bedroom FMR (FY2027)

$1,180

HUD

Active vouchers

1,431

92% utilized

Housing authorities

serving this metro

Voucher protection

State preempts

Iowa Code §§331.304(13), 364.3(13) (2021)

Fair Market Rent by bedroom count

HUD rent benchmarks for FY2027, effective October 1, 2026. These are not adopted housing-authority payment standards or household subsidy amounts. The illustration shows 90% to 110% of FMR; ZIP-based schedules, approved exceptions and Moving to Work rules can differ.

Bedrooms	FMR	Illustration: 90% to 110% of FMR
Efficiency (studio)	$942	$848 to $1,036
1-bedroom	$1,002	$902 to $1,102
2-bedroom	$1,180	$1,062 to $1,298
3-bedroom	$1,634	$1,471 to $1,797
4-bedroom	$1,972	$1,775 to $2,169

The two-bedroom HUD benchmark for Iowa City is $1,180. Multiplying by 90% and 110% gives $1,062 to $1,298, not an approval range. Gross rent includes the applicable allowance for tenant-paid utilities. Your agency must calculate assistance using its adopted standard, your household and the proposed unit.

What changed from FY2026 to FY2027 in Iowa City

HUD's two-bedroom Fair Market Rent for the Iowa City, IA metro rose from $1,141 in FY2026 to $1,180 in FY2027, a change of +$39 a month (+3.4%). FY2027 figures took effect on October 1, 2026.

Bedrooms	FY2026	FY2027	Change
Efficiency (studio)	$880	$942	+$62 (+7.0%)
1-bedroom	$961	$1,002	+$41 (+4.3%)
2-bedroom	$1,141	$1,180	+$39 (+3.4%)
3-bedroom	$1,587	$1,634	+$47 (+3.0%)
4-bedroom	$1,914	$1,972	+$58 (+3.0%)

The FMR is not what the voucher pays. Each housing authority sets its own payment standard. The basic range is 90% to 110% of the applicable FMR or SAFMR, with exceptions and Moving to Work policies that may differ. A HUD effective date is not a household rent-change notice. Confirm the adopted schedule and its application to your lease or reexamination with your agency.

Already renting with a voucher in Iowa City? Under standard HCV rules, once the housing authority raises its payment standard, the higher amount must be used for your subsidy no later than the earliest of three dates: a rent increase that would raise your share, your next regular or interim reexamination, or one year after the increase took effect (24 CFR 982.505(c)(4)). Confirm any applicable Moving to Work policy with your agency.

Landlords: a higher FMR does not raise a contract rent by itself. You still request the increase from the housing authority, and the new rent has to pass its rent reasonableness review against comparable unassisted units.

Source: HUD Fair Market Rents, FY2026 and FY2027, huduser.gov.

Voucher demand in this metro

Active vouchers

1,431

Occupied

1,321

Utilization

92%

Aggregated from HUD Public Housing Authority data (FY2026). High utilization means most vouchers issued here are already placed in a unit, so landlords who accept vouchers fill vacancies from a deep, reliable applicant pool.

Housing authorities serving Iowa City

2 PHAs administer vouchers in this metro. Apply with (or contact) the PHA that covers the specific address.

Iowa City Housing Authority
Iowa City , IA · IA022 · 1,431 HCV units
Status unknown
3193565400
Lone Tree Housing Commission
Lone Tree , IA · IA006
Status unknown
3196294689

Can a landlord refuse Section 8 in Iowa City, IA?

Yes. Iowa law blocks local governments from requiring voucher acceptance, so landlords in Iowa City, IA can legally decline Section 8 applicants. Listing on a voucher-friendly marketplace is the fastest way to find the landlords who do accept.

Iowa Code §§331.304(13), 364.3(13) (2021)

Voided Des Moines, Iowa City and Marion ordinances as of January 1, 2023. PRRAC Appendix B (March 2026).

View statute →

Informational only, not legal advice. Laws change, so verify current status before acting on a rejection or making a leasing decision.

Counties in the Iowa City metro

County pages show the local voucher count, the housing authorities that serve it, and ZIP-level rent limits where HUD publishes them.

Johnson County

Frequently asked questions

How much does Section 8 pay for a 2-bedroom in Iowa City?: In the Iowa City, IA metro, the FY2027 two-bedroom Fair Market Rent is $1,180 per month. For illustration, 90% to 110% of that benchmark is roughly $1,062 to $1,298. This is not an adopted payment standard or subsidy quote. ZIP schedules, approved exceptions and Moving to Work rules may differ. Gross rent includes the applicable allowance for tenant-paid utilities.
What are the FY2027 Fair Market Rents in Iowa City?: HUD's FY2027 Fair Market Rents for the Iowa City, IA metro, by bedroom size: studio $942, 1-bedroom $1,002, 2-bedroom $1,180, 3-bedroom $1,634, 4-bedroom $1,972. These are HUD benchmarks, not household subsidy amounts. Confirm whether your agency uses ZIP-based standards and which schedule applies to your unit.
Did Section 8 rent limits change in Iowa City for FY2027?: The two-bedroom Fair Market Rent for the Iowa City, IA metro went from $1,141 in FY2026 to $1,180 in FY2027, an increase of $39 a month. FY2027 Fair Market Rents took effect on October 1, 2026. HUD's effective date does not automatically change a household's assistance. Ask your administering agency which adopted schedule and effective date apply to a new lease, move or reexamination.
How do I apply for Section 8 in Iowa City?: Section 8 in Iowa City is administered by Iowa City Housing Authority, Lone Tree Housing Commission. Each agency has its own application process, waiting lists and preferences. You may apply to more than one agency when eligible lists are open; a listing inquiry is not a voucher application. If you already have a voucher, confirm the receiving agency and any portability requirements for the proposed address.

Find Section 8 apartments in Iowa City

VoucherMatch connects voucher holders with landlords who accept Section 8, and it is free for renters. The administering housing authority must approve the actual unit, rent and household assistance calculation.

Browse voucher-friendly listings in Iowa City List your unit free

Rent limits from HUD FY2027 Fair Market Rent data. Investor running the numbers? The RentalCalcs voucher analyzer uses this same dataset.