Location: Tama 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 | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $201,317 | 0.61% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50106 reveals several key points that are crucial for landlords and small-portfolio investors. Firstly, regarding the rent math, it does not work favorably for Section 8 participants. The Fair Market Rent (FMR) set at $860 for the fiscal year 2024 is significantly higher than the market rent reported by the Census ACS, which stands at $678. This discrepancy suggests that landlords participating in the Section 8 program will be overpaying relative to the local rental market rates.
Secondly, the acquisition cost is not particularly affordable. With a median home value of $251,433, potential investors should be cautious. The lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates that the housing market in this area might be stable but also less dynamic, making it harder to find deals or quickly resell properties if needed.
Lastly, the tenant demand is low. The ZIP code has a population of 1,163, with only 7.8% being renters. This means there are fewer potential tenants interested in renting, which could lead to prolonged vacancy periods and difficulty in maintaining occupancy levels.
In conclusion, ZIP 50106 presents challenges for Section 8 real estate investment. The rent math does not align well with market conditions, acquisition costs are high, and there is limited tenant demand. These factors suggest that this area is not an optimal choice for landlords and small-portfolio investors looking to participate in the Section 8 program.
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.