Section 8 Fair Market Rent (FMR) for ZIP 50126 - 2027

Location: Hardin County, IA | Metro: Franklin County, IA

Investment Score for ZIP 50126

C
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$120,754
1% Rule
0.84%
Annual Yield
10.04%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$750
1 Bedroom$770
2 Bedrooms$1,010
3 Bedrooms$1,300
4 Bedrooms$1,460
5 Bedrooms$1,694
6 Bedrooms$1,897
7 Bedrooms$2,049
8 Bedrooms$2,151

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $770 $83,494 0.92% C
2BR $1,010 $120,754 0.84% C
3BR $1,300 $165,224 0.79% D
4BR $1,460 $210,178 0.69% D
5BR $1,694 $256,751 0.66% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,368
Median Household Income
$55,185
Housing Units
3,073
Renter Percentage
36.4%
Occupancy Rate
90.2%
Renter Occupied
1,010

The ZIP code 50126, located in Iowa Falls, IA within the Hardin County, IA metro, presents an interesting snapshot when compared to typical ZIP codes in the same county. With a Fair Market Rent (FMR) of $1,020 for the fiscal year 2026, it stands slightly above the average market rent of $870. This indicates that while rents in ZIP 50126 are higher than what the market currently offers, they are still aligned with HUD's guidelines for affordable housing.

The median home value in ZIP 50126 is $153,152, which is likely representative of the broader Hardin County, IA metro area. However, the 36.4% renter share in this ZIP code is notably higher than the typical share seen in other ZIPs within the county. This high percentage of renters combined with below-average home values can be indicative of a value pocket for landlords and small-portfolio investors. Such a scenario often suggests that there is a significant demand for rental properties, which can translate into steady occupancy rates and potentially favorable returns on investment.

To further contextualize these figures, let us consider the implications. A value pocket typically means that there are opportunities to acquire properties at lower costs relative to the income generated from rentals. The fact that ZIP 50126 has a higher-than-average renter population and lower home values suggests that it might indeed be such a pocket. Landlords and investors should focus on the rental potential and the alignment with HUD's FMR guidelines to ensure profitability and compliance.

While we do not have specific data on other ZIP codes within Hardin County, the divergence between the relatively high renter share and the lower home values points towards a favorable environment for rental investments. Investors should be aware that although the FMR is higher than the current market rent, this could indicate future growth potential in rental prices, aligning them more closely with HUD's standards.

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.