Location: Marshall County, IA | Metro: Jasper County, 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 | $1,050 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,850 | $212,702 | 0.87% | C |
U.S. Census Bureau data (2024)
A landlord considering ZIP 50162 for a Section 8 investment must navigate several key factors to make an informed decision. The first step involves assessing whether the Fair Market Rent (FMR) of $1,170 for the fiscal year 2024 can cover the debt service on a property valued at $243,528. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. To determine if the FMR clears these expenses, the landlord must calculate their total annual debt service and compare it to the annual rental income based on the FMR. For instance, if the total annual debt service is less than $14,040 (which is $1,170 multiplied by 12), then the answer is yes, the FMR does clear the debt service.
The second question is whether the market rent of $1,259 (based on Census ACS data) is above, at, or below the FMR. Since the market rent is higher than the FMR, the landlord can potentially charge the higher market rate for non-Section 8 tenants, while still meeting the requirements for Section 8 tenants who pay the lower FMR. This creates a scenario where the landlord can diversify their tenant base and maximize revenue.
The third factor is evaluating the demand. In ZIP 50162, 31.1% of residents are renters, indicating a significant portion of the population that relies on rental housing. However, the data provided does not include the Days on Market (DOM), which would indicate how quickly properties are rented out. Without this information, the landlord must rely on the percentage of renters to gauge demand. Given the high percentage of renters, there is likely sufficient demand to fill vacancies promptly.
If the FMR of $1,170 covers the landlord's debt service and the market rent of $1,259 is higher, then the answer is yes. The landlord can effectively manage both Section 8 and market-rate tenants, ensuring steady cash flow and potentially higher profits.
If the FMR of $1,170 does not cover the debt service, then the answer is no. Investing in this ZIP code would result in financial losses due to the inability to meet the necessary expenses with the FMR alone.
In cases where the FMR just barely covers the debt service and the market rent is only slightly higher, the answer is it depends. The landlord must consider additional factors such as vacancy rates, competition, and the overall economic health of the area to make a final decision.
The combination of these factors provides a comprehensive framework for deciding whether to invest in ZIP 50162 for Section 8 purposes. Landlords should use this decision tree to evaluate their specific circumstances and the local market conditions before making any investment decisions.
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.