Location: Marion County, IA | Metro: Marion 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 | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $126,959 | 0.73% | D |
| 3BR | $1,100 | $169,053 | 0.65% | D |
U.S. Census Bureau data (2024)
A Section 8 investment in ZIP code 50163 in Dallas, IA, comes with several inherent risks that potential landlords must consider. Tenant turnover is a significant concern due to the lack of available market rent data, while the Fair Market Rent (FMR) for the metro area is set at $920 for fiscal year 2026. This uncertainty can lead to inconsistent cash flows if tenants leave or fail to renew their leases.
Vacancy exposure is another critical factor, as the Days on Market (DOM) for rental properties in this area is not available. A higher DOM indicates longer periods of vacancy, which can be costly for landlords. With a typical home value of $142,439 and a median income of $73,618, there is also a risk of deferred maintenance. Landlords may need to invest in property upkeep to meet Section 8 standards, especially if the property has been neglected due to its relatively lower value compared to its location's average.
However, these risks are offset by the high concentration of renters in the area. The 11.7% renter share suggests a robust demand for rental housing, particularly for those using housing vouchers. High renter density typically translates into greater competition among tenants for available units, which can help maintain occupancy rates even during economic downturns or changes in local housing markets.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 50163, Dallas, IA, is moderate. While there are challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the strong renter base provides a solid foundation for maintaining stable occupancy and cash flow.
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.