Location: Jasper 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $145,406 | 0.69% | D |
| 3BR | $1,340 | $220,692 | 0.61% | D |
| 4BR | $1,410 | $276,758 | 0.51% | F |
| 5BR | $1,636 | $360,837 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP code 50208 is situated in the city of Newton, Iowa, representing a typical suburban neighborhood. With a total population of 20,595, it has a significant rental component, with 34.5% of residents being renters. The median household income in this area stands at $62,306, indicating a middle-class community. Median home values are set at $201,398, reflecting a stable residential market.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 50208 in fiscal year 2024 is established at $860. This figure is slightly above the market rent, which is currently pegged at $850 (ZORI). This marginal difference suggests that landlords can expect a reasonable alignment between the rental income they receive from Section 8 tenants and the broader rental market trends.
The dynamics of the ZIP 50208 rental market make it suitable for both hands-off voucher operators and hands-on value-add buyers. For those seeking a passive investment strategy, the proximity of the FMR to the market rent ensures a steady stream of income without the need for extensive property management. Meanwhile, value-add investors can leverage the existing infrastructure and demographics to enhance property values through renovations or strategic upgrades, thereby increasing their rental yields beyond the base market rates.
To summarize, ZIP 50208 in Newton, IA, offers a balanced environment for Section 8 investments. Its middle-class demographic, with a substantial rental base, supports both passive and active investment approaches. The slight premium of the FMR over the market rent provides an opportunity for landlords to operate effectively within the voucher program while maintaining competitive pricing in the local rental market.
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.