Location: Poweshiek County, IA | Metro: Mahaska 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 | $700 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,180 |
| 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 |
|---|---|---|---|---|
| 2BR | $930 | $168,504 | 0.55% | F |
| 3BR | $1,180 | $234,694 | 0.5% | F |
| 4BR | $1,220 | $279,310 | 0.44% | F |
U.S. Census Bureau data (2024)
New Sharon, IA, located in ZIP code 50207, is a small town neighborhood with a total population of 2,325 residents. The town reflects a mix of homeowners and renters, with 33.4% of the residents being renters. This indicates a community where a significant portion of the population relies on rental housing. The median household income in New Sharon stands at $76,053, which is a solid figure suggesting that most residents have stable financial situations. However, the median home value of $217,270 shows that homeownership is not only a possibility but also a reality for many, given the town's size and the relatively modest cost of living.
Transitioning into the economic realities of renting in New Sharon, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. In contrast, the actual market rent as per the Census ACS data is significantly lower at $683. This discrepancy between the FMR and the market rent highlights an opportunity for landlords and small-portfolio investors. It suggests that there is room for increasing rents towards the FMR level without pricing out potential tenants, especially those who might benefit from Section 8 vouchers.
The question then arises: does this place suit a hands-off voucher operator or a hands-on value-add buyer? Given the lower market rent compared to the FMR, a hands-on value-add buyer could potentially improve properties and increase their rental value closer to the FMR, thereby maximizing returns. On the other hand, a hands-off operator would still find the market favorable, as the current market rent is below the FMR, ensuring that Section 8 vouchers can cover a substantial portion of the rent without requiring significant management intervention.
In summary, New Sharon, IA offers a balanced environment for investment. With a median income of $76,053 and a median home value of $217,270, it presents a stable backdrop for property investments. The disparity between the FMR ($920) and the market rent ($683) provides flexibility for both hands-off and hands-on operators to manage their portfolios effectively while catering to the needs of low-income renters through the Section 8 program.
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.