Location: Greene 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 | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $184,568 | 0.8% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50235 reveals a unique balance between yield potential and market stability, making it an interesting area for real estate investment. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,150. This figure is notably higher than the current market rent of $693, indicating a strong opportunity for rental income growth. However, the median home value in this ZIP is $196,518, which is a significant capital investment.
On the stability axis, the ZIP code has a rental rate penetration of 25.0%, suggesting that a quarter of the households are renters. This percentage is moderate and does not necessarily indicate high volatility. The median household income is $89,583, providing a solid financial base for tenants, although the lack of data on days on market (DOM) limits insight into how quickly properties can be leased or sold.
The disparity between the FMR and the current market rent points towards a high-yield potential. Investors could capitalize on this gap by positioning their rental properties closer to the FMR, thereby increasing cash flow. However, the relatively low rental rate penetration and the absence of DOM data suggest a less stable environment compared to areas with higher tenant populations and quicker leasing cycles.
Given these factors, ZIP 50235 leans towards being a high-yield/low-stability market. It offers substantial upside in terms of rental income, but the lower percentage of renters and uncertain leasing dynamics introduce risk. This classification aligns with a flip-style market strategy where quick appreciation and rental income growth are prioritized over long-term stability.
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.