Location: Marshall County, IA | Metro: Jasper County, IA HUD Metro FMR Area
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 | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $194,546 | 0.52% | F |
| 3BR | $1,370 | $270,475 | 0.51% | F |
| 4BR | $1,440 | $363,695 | 0.4% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 50028 in Baxter, IA, are significant. Tenant turnover is likely to be higher due to the market rent being set at $900 compared to the Federal Market Rent (FMR) of $910 for FY 2024. This slight discrepancy can make it difficult to attract tenants who might prefer properties that offer the higher FMR, leading to increased vacancy periods. Vacancy exposure is particularly concerning given the lack of data on days on market (DOM), which indicates uncertainty around how quickly properties can be filled. Additionally, the typical home value of $264,556 and median income of $72,022 suggest that landlords might face challenges with deferred maintenance costs, as the financial strain on tenants could lead to lower quality upkeep of the property.
However, these risks must be weighed against the high renter share of 17.7%. A high proportion of renters often correlates with a higher demand for housing vouchers, which can provide a steady stream of rental income. The presence of a significant number of voucher holders in the area can mitigate some of the risks associated with tenant turnover and vacancy rates, as these individuals are typically more reliable and less sensitive to small fluctuations in rent prices.
In conclusion, the risk for a first-time Section 8 landlord in ZIP 50028 in Baxter, IA, is moderate.
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.