Location: Ames, IA | Metro: Ames, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The ZIP code 50012 in Ames, IA, fits best as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the Fair Market Rent (FMR) data for the area, which stands at $1120 for fiscal year 2024. Given that the market rent and median home values are currently not available, the FMR serves as a reliable benchmark for rental properties in this ZIP code.
As a cash-flow anchor, 50012 provides consistent and predictable income due to the Section 8 program's fixed rental rates. Landlords can expect to receive a steady stream of rental payments, which helps stabilize their overall investment portfolio. The fact that the FMR is set at $1120 ensures that landlords will be paid this amount per unit, regardless of market fluctuations. This is particularly advantageous when other parts of an investment portfolio may experience volatility or downturns.
Moreover, the ZIP code has a high renter share of 100%, indicating that all residents are likely to be renters. This statistic supports the idea that 50012 is a strong cash-flow anchor, as there is a robust demand for rental properties. However, without specific data on median income, it's challenging to assess the broader economic health of the area and its potential impact on long-term tenant stability.
In conclusion, ZIP 50012 should be considered as a cash-flow anchor due to the guaranteed rental income provided by the Section 8 program and the high renter share. This makes it an ideal choice for landlords and small-portfolio investors looking to secure stable, predictable cash flows from their investments.
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.