Location: Greene County, IA | Metro: Boone 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 | $790 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $79,932 | 1.33% | A |
| 3BR | $1,390 | $126,578 | 1.1% | B |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 50107, Grand Junction, IA, provides a clear picture of potential investment yields based on Fair Market Rent (FMR) and market rent data. For a two-bedroom property, the annualized FMR for FY 2024 is set at $900 per month, while the Census ACS reports a market rent of $874 per month.
To calculate the implied gross yield, we use the median home value of $120,565 as our investment basis. When using the FMR of $900 per month, the annual rental income would be $10,800. Dividing this by the median home value gives an implied gross yield of approximately 8.95%. Conversely, applying the market rent figure of $874 per month results in an annual rental income of $10,488, leading to an implied gross yield of around 8.70%.
Given the 29.4% renter density in Grand Junction, IA, it's important to note that the majority of homeownership suggests a preference for owning rather than renting. This trend leans towards the market rent scenario being more realistic. The fact that the days on market (DOM) is listed as N/A also indicates that there might be limited turnover in the rental market, which could affect the ability to quickly adjust rents to match FMR levels.
In conclusion, the gross yield based on the market rent of $874 per month is more likely to reflect actual investment returns in ZIP 50107. While the FMR-based yield of 8.95% is slightly higher, the local rental market dynamics suggest that achieving this level of income consistently may be challenging. Investors should consider these factors when evaluating potential properties under Section 8 in this area.
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.