Location: Wayne County, IA | Metro: Lucas County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
Households in ZIP code 50238, with a median income of $59,625, face significant challenges in affording the market rate rent of $700. This indicates that many residents may struggle to find suitable housing without financial assistance.
The Federal Market Rent (FMR) standard for the area, set at $920 for metro FY 2026, further highlights the affordability gap. This standard is notably higher than the current market rate, suggesting that even with vouchers, the cost of housing remains a concern for many tenants.
With only 11.4% of the population being renters and a total population of 1,195, competition among landlords is likely to be intense. The limited number of renters means that landlords must cater to a smaller pool of potential tenants, which could lead to reduced rental income if too many units become vacant due to unaffordable rates.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. Given the high FMR compared to both median income and market rate, accepting vouchers can provide a steady stream of tenants. However, landlords should also be prepared for the administrative complexities associated with voucher programs. For those aiming to secure cash-paying tenants, lowering rents closer to the market rate of $700 might attract more residents but will reduce profit margins. Landlords must weigh these factors carefully to ensure sustainable occupancy and income levels.
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.