Location: Boone County, IA | Metro: Boone County, IA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 50223 in Boone County, Iowa, for fiscal year 2024 is set at $860. This figure represents the maximum amount that landlords can charge for Section 8 voucher tenants. However, without current market rent data, it's challenging to determine if this FMR allows for positive cash flow, marginal profitability, or requires premium units to break even.
To provide context, the median home value in ZIP 50223 is $176,966. Assuming a typical mortgage rate and property tax scenario, this would suggest that rental income derived from properties in this area should be significantly lower than the median home value to ensure affordability for potential homeowners. The lack of specific market rent data means we cannot calculate an exact rent-to-price ratio, but given the median home value, it's likely that the $860 FMR would support at least marginal profitability for most standard units.
In the absence of recent data on days on market (DOM) and the percentage of price cuts, it's important to note that these factors can influence the rent-versus-buy dynamics. Typically, a high DOM or frequent need for price cuts indicates a buyer-friendly market, which could impact rental demand and pricing. Conversely, low DOM and minimal price cuts suggest a seller's market, potentially making rental properties more attractive.
The strongest investor angle in ZIP 50223 appears to be stability. Given the consistent median home value and the predictability of HUD FMRs, investors can rely on steady cash flows from Section 8 tenants, ensuring long-term financial stability. This predictability is crucial for small-portfolio investors who seek reliable returns without the volatility associated with market fluctuations.
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.