Location: Wayne County, IA | Metro: Wayne County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 50008, Corydon, Iowa, reveals a detailed financial picture for potential investments. For a two-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2026 is $920 annually. This figure contrasts with the market rent of $641, based on Census ACS data.
To derive the gross yield, we first calculate the annual rental income for both scenarios. Using the FMR, the annual rental income would be $920. Against the median home value of $167,054, this implies a gross yield of approximately 0.55%, calculated as follows:
$920 / $167,054 = 0.0055 or 0.55%
For the market rent scenario, the annual rental income is $641. This results in a gross yield of about 0.38%:
$641 / $167,054 = 0.0038 or 0.38%
Given the 15.0% renter density in Corydon, it is important to consider the likelihood of finding tenants willing to pay the higher FMR rate. The N/A-day DOM indicates that there is no data available on the days-on-market for properties in this area, which could suggest either a strong local rental market or a lack of recent transactions.
Considering these factors, the gross yield based on the HUD FMR of $920 appears more optimistic. However, the actual market conditions might lean towards the lower market rent of $641, leading to a less favorable gross yield of 0.38%. Landlords and small-portfolio investors should carefully weigh these figures when assessing the potential returns of Section 8 properties in ZIP 50008.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.