Location: Marion 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $198,225 | 0.49% | F |
| 3BR | $1,310 | $276,538 | 0.47% | F |
| 4BR | $1,380 | $320,265 | 0.43% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1030 for ZIP 50228 in fiscal year 2024 can cover the mortgage on a $265,756 home. To address this concern, it's important to consider that the FMR reflects the average rent for a two-bedroom unit, which is typically lower than what larger homes might command. However, the data suggests that market rents are closer to $878 per month, indicating that a two-bedroom home might indeed struggle to cover the mortgage on a property of this value.
The investor might also doubt if there is sufficient renter demand at 18.4%. According to the latest data, about 24.1% of housing units in ZIP 50228 are renter-occupied, suggesting a reasonable level of demand. However, the rental vacancy rate stands at 6.1%, which implies that there is some competition among landlords for tenants. This indicates that while there is demand, it is not overwhelming, and landlords must be strategic in their pricing and marketing efforts to attract and retain tenants.
Another objection could be whether vouchers will keep pace with market rents of approximately $878. The FMR of $1030 suggests that voucher amounts should theoretically cover a significant portion of market rents. However, the actual market rents can vary widely based on the condition and amenities of the property. With a median gross rent of $796, vouchers seem to align closely with the lower end of the market, but they may not fully cover higher-end rents without additional out-of-pocket expenses for tenants.
In conclusion, while the data provides insights into the financial viability of investing in ZIP 50228, it also highlights potential challenges. The FMR is likely insufficient to cover mortgages on higher-priced homes, and the rental market shows moderate demand with competitive conditions. Vouchers appear to support lower market rents but may fall short for premium properties.
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.