Location: Tama 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 | $880 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $222,150 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50173 in Tama County, Iowa, reveals several key points for landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the metro region in fiscal year 2026 is set at $1,200. However, the current market rent, as per the Census ACS data, stands at $1,099. This means that landlords would be receiving less than the FMR when renting out their properties to tenants eligible for Section 8 benefits.
Acquisition in this ZIP code is moderately affordable. With a median home value of $169,076, purchasing property here is within reach for many investors. Unfortunately, the data lacks specifics on the number of days on market (DOM) and the percentage of homes that have had their prices cut. Without these details, it's challenging to gauge how quickly homes sell and if there is significant downward pricing pressure.
Tenant demand is relatively low in ZIP 50173. The total population is 705, with only 19.6% being renters. This indicates that the pool of potential tenants is limited, which could make it harder to find occupants for rental properties.
Verdict: ZIP 50173 presents a mixed picture for Section 8 real estate investment. While the median home value suggests an affordable entry point into the market, the mismatch between FMR and actual market rents, along with the limited tenant demand, poses challenges. Investors should proceed with caution, focusing on areas where the market rent aligns more closely with the FMR and where the tenant base is larger and more stable.
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.