Location: Marshall County, IA | Metro: Ames, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50206 in Marshall County, Iowa, reveals several key points regarding its suitability for real estate investment, particularly focusing on the Section 8 housing voucher program.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 50206 in fiscal year 2024 is set at $890. This figure is significantly higher than the average market rent of $613, according to the latest Census American Community Survey (ACS) data. Landlords participating in the Section 8 program can expect to receive a higher rental income compared to the current market rate, making the rent math favorable for this area.
The second question concerns the affordability of property acquisition. The median home value in ZIP 50206 is $175,976. Although the data does not provide specifics on the number of days on the market (DOM) or the percentage of homes that required price cuts, the median home value suggests that properties are reasonably priced for acquisition. This makes it an attractive option for investors looking to purchase properties without overextending their budgets.
The third question pertains to tenant demand. ZIP 50206 has a total population of 349, with a 15.3% renter share. While the overall population is small, the proportion of renters indicates a steady demand for rental properties. Given the limited number of residents, landlords should ensure their properties meet the needs of potential tenants to maintain occupancy rates.
In conclusion, ZIP 50206 presents a viable opportunity for Section 8 real estate investments. The higher FMR compared to market rents ensures that landlords can command better rental income, while the median home value keeps property acquisition costs within reasonable limits. Despite the small population, the existing renter share suggests a stable tenant base. However, investors must be prepared to cater to a niche market and possibly face challenges related to the limited pool of potential tenants.
Data Sources: FMR data from HUD (2027). 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.