Location: Boone County, IA | Metro: Boone 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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $182,716 | 0.51% | F |
| 3BR | $1,290 | $257,108 | 0.5% | F |
| 4BR | $1,390 | $289,011 | 0.48% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 50212 reveals a competitive landscape where understanding the financials is crucial. The HUD Fair Market Rent (FMR) for ZIP 50212 is set at $890 for the fiscal year 2024. This figure is significantly higher than the market rent reported by the Census ACS, which stands at $743. Given these numbers, voucher tenants will generally cashflow at the HUD FMR, allowing landlords to maintain profitability even when dealing with subsidized housing.
To further analyze the investment potential, consider the median home value in the area, which is $236,292. Using this figure, we can derive the rent-to-price ratio. With an average market rent of $743, the annual rent would be approximately $8,916. Dividing this by the median home value gives us a rent-to-price ratio of roughly 3.77%. This ratio suggests that the rental market is relatively strong compared to property values, making it attractive for investors seeking steady cash flow.
Note that the median days on market (DOM) and the percentage of price cuts are not available for this area. However, given the disparity between the HUD FMR and the actual market rent, it is clear that the primary advantage for investors lies in the cashflow potential. The ability to charge closer to the HUD FMR while the market rent is lower provides a significant edge, ensuring positive cash flow without the need for premium units.
The strongest investor angle in ZIP 50212 is undoubtedly cashflow, given the favorable position of HUD FMR relative to market rents. This allows for stable and predictable returns on investment, making it an ideal location for landlords and small-portfolio investors looking to capitalize on the Section 8 program.
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.