Location: Shelby County, IA | Metro: Audubon County, IA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $129,898 | 0.72% | D |
| 3BR | $1,290 | $182,432 | 0.71% | D |
| 4BR | $1,530 | $240,807 | 0.64% | D |
| 5BR | $1,775 | $330,520 | 0.54% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 50022 (Atlantic, IA) presents a unique setup for both landlords and small-portfolio investors. With a median home value of $158,692, the area remains affordable compared to national averages, but the dynamics of the market suggest a cautious approach moving forward.
A notable trend is that only 0.2% of listings have seen price reductions. This indicates a relatively stable market where sellers are confident in their asking prices. However, the median days on market (DOM) being listed as N/A suggests either an exceptionally quick turnover or limited data availability, which could imply a competitive environment where homes are selling before reaching typical DOM metrics.
The rental market also provides insight into the local economy's health and demand. The Fair Market Rent (FMR) for the metro area is projected at $930 for fiscal year 2026, whereas the current market rent is around $773 based on Census ACS data. This gap signals potential upward pressure on rents, as the market adjusts to align with the projected FMR. For landlords, this suggests that rental income could increase in the coming years, providing a stronger cash flow position.
For long-hold investors, the appreciation thesis must be carefully considered. The stability indicated by the low percentage of reduced listings and the potential for rental growth does not necessarily translate into significant property value increases. The median home value has remained steady, suggesting a balanced market where neither buyers nor sellers hold overwhelming leverage. Therefore, while rental income may improve, the realistic expectation for property appreciation is modest. Investors should focus on the rental income potential rather than rapid capital gains.
In summary, the combination of a stable median home value, minimal price reductions, and a growing gap between market rents and projected FMRs points to a market where landlords can expect improved rental yields without substantial capital appreciation. This makes Atlantic, IA, a suitable location for those looking to build a steady, long-term rental portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.