Location: Hamilton County, IA | Metro: Ames, 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 | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $254,172 | 0.61% | D |
| 4BR | $1,870 | $285,626 | 0.65% | D |
U.S. Census Bureau data (2024)
In ZIP code 50236, there are several factors that could pose challenges for a landlord considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $1,105 being notably higher than the Fair Market Rent (FMR) of $890 for fiscal year 2024. This discrepancy suggests that tenants who qualify for Section 8 vouchers might find it difficult to afford additional costs beyond their subsidy, leading to higher turnover rates. Additionally, the vacancy exposure is a risk due to the lack of data on days on market (DOM), indicating potential instability in the rental market. The deferred maintenance exposure is also substantial, considering the typical home value of $252,290 and a median income of $85,046. Landlords should be prepared to invest in property upkeep, as residents may struggle to contribute to such costs.
Despite these risks, the high renter density in ZIP 50236 offers a silver lining. With a 14.2% renter share, there is likely a robust demand for rental properties, including those utilizing Section 8 vouchers. This high concentration of renters can help mitigate some of the financial risks associated with tenant turnover and vacancy exposure, as there is a larger pool of potential tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.