Location: Marion County, IA | Metro: Marion County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 50119 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, as of FY 2026, is set at $1,020 annually by the metropolitan guidelines. Meanwhile, the market rent based on Census ACS data stands at $792 per month.
To derive the gross yield for both scenarios, we need to consider the median home value in ZIP 50119, which is $163,367. For the FMR scenario, assuming a 2-bedroom apartment represents a typical unit in the area, the annualized rental income would be $12,240 ($1,020 x 12 months). This yields a gross rental yield of approximately 7.5% when compared to the median home value. The calculation is straightforward:
Gross Yield (FMR): $12,240 / $163,367 = 7.5%
In contrast, using the market rent figure of $792 per month, the annual rental income would be $9,504 ($792 x 12 months). This translates into a gross rental yield of about 5.8%. Here's the calculation:
Gross Yield (Market Rent): $9,504 / $163,367 = 5.8%
Given that only 10.6% of households in ZIP 50119 are renters, it suggests a relatively low demand for rental properties. Additionally, the N/A-day Days on Market (DOM) indicates that there is either insufficient data or no significant trend to report regarding how quickly rental units are being leased. However, despite these factors, the higher gross yield derived from the FMR scenario is more indicative of potential returns for Section 8 properties in this area.
The discrepancy between the two yields highlights the importance of understanding the local rental market dynamics. While the FMR scenario offers a more attractive gross yield, the actual rental rates may vary due to competition and other market conditions. Therefore, investors should consider the FMR as a benchmark for potential income but also be prepared to adjust expectations based on the reality of the local rental market.
Data Sources: FMR data from HUD (2027). 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.