Location: Poweshiek 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 | $730 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $167,950 | 0.6% | D |
| 3BR | $1,400 | $226,782 | 0.62% | D |
| 4BR | $1,430 | $279,994 | 0.51% | F |
| 5BR | $1,659 | $355,270 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 50112, located in Grinnell, IA, within the Poweshiek County, IA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. This conclusion is based on the specific dollar figures from the data provided.
The Fair Market Rent (FMR) for a four-bedroom unit in ZIP 50112 for fiscal year 2024 is set at $900. Comparatively, the current market rent for a similar unit stands at $894. The slight premium of $6 offered by the Section 8 program ensures that landlords can maintain positive cash flow without significant risk of vacancy or delinquency.
The median home value in ZIP 50112 is $217,246, which is relatively stable and does not indicate rapid appreciation or depreciation trends. This stability is crucial for a cash-flow anchor, as it minimizes the risk associated with sudden changes in property values and keeps the focus on consistent rental income.
The 0.2% price-cut share and N/A-day Days on Market (DOM) suggest that the housing market in this ZIP code is not particularly volatile. While these figures hint at some efficiency in the market, they do not strongly support an appreciation play strategy. Appreciation plays typically require a more dynamic market where property values are expected to increase significantly over time.
ZIP 50112 also has a median income of $67,078 and a renter share of 31.3%. These numbers point towards a moderate level of economic activity and a reasonable demand for rental properties. However, the primary factor that makes this ZIP code a cash-flow anchor is the favorable spread between the FMR and the market rent.
In summary, ZIP 50112 should be considered a cash-flow anchor due to the positive but modest spread between the FMR and market rent, along with the stable median home value. This strategic position allows landlords to rely on steady, predictable income without the need for speculative investments in rapidly appreciating markets.
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.