Location: Hamilton County, IA | Metro: Hamilton County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
The ZIP code 50246 is situated in a rural area characterized by a modest population size of 614 individuals. This community reflects a typical small-town dynamic where nearly 3 out of every 10 residents are renters, indicating a rental market that, while not extensive, is present. The median household income stands at $61,324, which places it slightly above the national average, suggesting a stable economic base. However, the median home value of $172,830 is notably lower, pointing towards an affordable housing market.
When considering the investment potential through the lens of Section 8, the Financial Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990. In contrast, the actual market rent, as per Census ACS data, is significantly lower at $547. This substantial gap between the FMR and the market rent presents a clear opportunity for landlords and small-portfolio investors to secure a steady stream of rental income with minimal risk, given the government-backed nature of Section 8 vouchers.
The hands-off operator will find ZIP 50246 suitable for their strategy, as the financial cushion provided by the difference between the FMR and the market rent ensures a reliable source of income without the need for constant tenant turnover or market-rate adjustments. For those looking to add value, the low median home value suggests potential for renovation projects or improvements that could increase property value over time, although the primary focus should remain on the stability offered by Section 8 tenancy.
In summary, ZIP 50246 offers a balanced environment for both hands-off and hands-on investors, with a particular advantage for those seeking a stable, government-supported rental income. The disparity between the FMR and market rent provides a significant margin for profit, making it an attractive option for those interested in Section 8 properties.
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.