Location: Marshall County, IA | Metro: Marshall 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 | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $191,493 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 50142 presents an interesting scenario for both renters and landlords. With a median income of $76,250, households in this area face significant challenges when it comes to affording housing at the market rate of $533 per month, according to Census ACS data. However, the situation becomes even more complex when considering the Federal Market Rent (FMR) standard of $920 per month for metro areas in fiscal year 2026.
The discrepancy between the market rate and the FMR highlights a substantial affordability gap. At $533, the market rate is well below the FMR, suggesting that rental properties in 50142 could potentially be underpriced compared to what the government deems fair market value. This gap is further emphasized by the fact that only 7.1% of the 720 residents are renters, indicating a relatively low demand for rental properties in this area.
For landlords, this means competition for tenants who can pay the market rate is fierce. Given the low percentage of renters, attracting those who can afford $533 per month might require offering competitive amenities or reducing costs to maintain occupancy rates. However, the FMR of $920 represents a higher potential income stream through Section 8 vouchers, which could be a more stable and lucrative option despite the lower number of eligible applicants.
The takeaway for landlords is clear: while cash-paying tenants might offer flexibility, the higher guaranteed payments from Section 8 vouchers could provide a more secure financial outlook. Landlords should weigh the benefits of a steady income against the administrative requirements of participating in the voucher program. Given the low rental demand and the significant affordability gap, opting for voucher tenants could be a strategic move to ensure consistent occupancy and revenue.
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.