Location: Hardin County, IA | Metro: Ames, 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 | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $123,088 | 0.84% | C |
| 3BR | $1,450 | $167,785 | 0.86% | C |
| 4BR | $1,750 | $195,690 | 0.89% | C |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1030 for ZIP 50122 in Hubbard, IA, landlords can expect to receive a fixed payment from the government for participating in the Section 8 program. The local market rent, according to Census ACS data, stands at $614, indicating a significant premium of $416 above the market rate for those enrolled in the housing assistance program. This premium is particularly attractive given the median home value in the area is $166,111, suggesting a relatively affordable market for both landlords and tenants.
The 10.4% renter share highlights that a substantial portion of the population relies on rental properties, which could mean steady demand for housing. However, landlords must also consider the median income of $81,739 when setting their rent expectations, as it reflects the financial capacity of potential tenants. Despite the lack of specific data on days on market (DOM) and the percentage of price-cut shares, the disparity between the FMR and market rent figures provides a clear advantage for landlords willing to participate in Section 8.
Investors should be aware that while the median income is a useful indicator, the actual income levels of individual tenants will vary. The higher FMR compared to the market rent means that landlords can potentially offer more competitive rates to attract tenants while still receiving adequate compensation through the Section 8 voucher program. Additionally, the lower market rent suggests that landlords might find it easier to fill vacancies, as the subsidized rents make housing more accessible to low-income families.
Given the specific numbers, landlords and small-portfolio investors in ZIP 50122 should see Section 8 participation as a financially viable option, especially considering the premium over market rent and the manageable median home values. The verdict on Section 8 for this area is positive, offering a reliable source of income and a means to support the community's housing needs.
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.