Location: Wright County, IA | Metro: Franklin 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 | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $79,440 | 1.17% | B |
| 3BR | $1,110 | $137,526 | 0.81% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 50071, which includes Dows, Iowa, stands at $83,036. This figure places considerable constraints on the average household's ability to pay market-rate rents. At a market rate of $695 per month, as reported by the Census Bureau's American Community Survey (ACS), households have a reasonable chance of affording rent without financial strain.
However, when comparing the market rate to the Federal Market Rate (FMR) of $920 per month for the metro area in fiscal year 2026, it becomes evident that the gap between what landlords might expect and what renters can realistically afford is significant. The FMR is higher than the actual market rate, indicating that landlords who rely solely on voucher payments may face challenges in finding tenants willing to pay the higher rates.
With 21.3% of the population renting and a total population of 847, the rental market in Dows is relatively small, which could intensify competition among landlords. A smaller pool of potential tenants means that landlords must be strategic in setting their rental prices and deciding whether to accept Section 8 vouchers or focus on cash-paying renters.
The takeaway for landlords is clear: accepting Section 8 vouchers can provide a steady stream of income but may limit the number of available tenants due to the discrepancy between the FMR and the actual market rate. On the other hand, focusing on cash-paying renters could attract a broader base of tenants but requires setting competitive rates that align with the local income levels. Landlords should consider diversifying their portfolio to include both voucher and cash-pay units to balance risk and ensure a consistent tenant pipeline.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.