Location: Marion County, IA | Metro: Marion 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 | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,100 | $241,443 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50062 reveals a unique balance between yield and stability that positions it as an attractive market for both high-yield seekers and those looking for steady cash flow.
Yield: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $960, which is significantly higher than the market rent of $784. This gap suggests potential for higher rental yields if properties can be leased at the FMR rate. Given the median home value of $232,092, landlords could expect a rental yield of approximately 3.2% based on the FMR, calculated by taking the annual rent ($960 x 12 months) divided by the home value. This is notably above the typical market rate yield of about 2.5%, indicating a higher return opportunity.
Stability: Stability in ZIP 50062 is moderate, with 22.0% of residents being renters. While this percentage is lower than many other areas, it still indicates a reasonable demand for rental housing. The average daily days on market (DOM) figure is not available, which makes it difficult to assess how quickly properties can be leased. However, the median household income of $51,146 suggests that there is sufficient financial capacity among residents to support rental payments at the FMR level, contributing to the stability of rental income.
Considering these factors, ZIP 50062 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The combination of a relatively high rental yield when leasing at the FMR and the presence of stable incomes among residents supports this classification. Landlords and small-portfolio investors should focus on positioning their properties to attract tenants willing to pay closer to the FMR, thereby maximizing rental income while maintaining a reliable tenant base.
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.