Location: Monroe County, IA | Metro: Mahaska County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
ZIP 50044 in Bussey, IA, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The median home value is $120,700, which is significantly lower than the metro area's Fair Market Rent (FMR) of $920 for FY 2026. This suggests that landlords can potentially acquire properties at a lower cost compared to the overall metro area.
The disparity between the FMR ($920) and the market rent ($573) indicates that landlords who invest in this ZIP code can expect higher cash flows per unit. With the median income at $75,417, there is a strong potential for tenants to qualify for Section 8 vouchers, ensuring a steady stream of rental payments. Additionally, the lower median home value means that landlords can purchase properties at a discount, further enhancing their investment returns.
While appreciation plays and diversifiers can be valuable components of a real estate portfolio, ZIP 50044 is best suited as a cash-flow anchor due to the favorable rent-to-value ratio and the likelihood of consistent rental income through Section 8 programs.
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.