Location: Wayne County, IA | Metro: Clarke County, IA
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 | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $107,722 | 0.86% | C |
| 3BR | $1,230 | $147,983 | 0.83% | C |
U.S. Census Bureau data (2024)
ZIP code 50123 in Iowa is a modest-sized market with a population of 883 residents. Only 18.6% of these residents are renters, indicating that it is not a renter-heavy area but rather one dominated by homeowners. This suggests that the demand for Section 8 vouchers is likely to be less intense compared to areas with higher percentages of renters.
The median household income in this ZIP code is $62,500, which provides a benchmark for assessing affordability. The average market rent stands at $542, representing approximately 10.7% of the median income. This percentage is calculated by dividing the monthly rent by the annual income ($542 / $62,500 * 12 = 10.7%). Such a figure indicates that the rent is relatively affordable for most households in the area.
However, when comparing the market rent to the Fair Market Rent (FMR), which is set at $920 for FY 2026 in the metro area, it becomes evident that the actual rents in ZIP 50123 are significantly lower. This discrepancy can be attributed to the smaller size and rural nature of the ZIP code, which typically correlates with lower housing costs. Landlords should note that the FMR is used to determine payment standards for Section 8 vouchers, meaning tenants may have a budget closer to the FMR for their rental payments.
In terms of tenant profiles, landlords in ZIP 50123 can expect a mix of low-income individuals and families who rely on Section 8 vouchers to cover their rent. These tenants will generally be seeking affordable housing options and may have limited financial resources beyond their voucher support. It is important for landlords to understand the eligibility criteria for Section 8 vouchers, which often includes having an income below 50% of the area median income. In this case, eligible tenants would likely have an income below $31,250 annually.
To summarize, while ZIP 50123 has a modest demand for Section 8 vouchers due to its relatively low percentage of renters, the market rent is considerably lower than the FMR. This makes the area attractive for low-income tenants seeking affordable housing. Landlords should prepare for tenants who require financial assistance through vouchers and ensure they meet all necessary requirements for participating in the Section 8 program.
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.