Location: Marshall 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 | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,450 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,040 | $175,982 | 0.59% | F |
| 3BR | $1,450 | $233,328 | 0.62% | D |
| 4BR | $1,750 | $322,510 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP 50247, located in State Center, IA, within the Marshall County, IA metro area, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 50247 in fiscal year 2024 is set at $890. This figure stands as a benchmark for rental income that landlords can expect under the Section 8 program.
In contrast, the current market rent for the area is priced at $795. This means there is a positive spread of $95 between the FMR and the market rent. Given that the median home value in ZIP 50247 is $297,164, the FMR provides a reliable cushion for landlords, ensuring they receive a higher rent payment than what the market currently dictates. This is particularly advantageous when considering the stability and predictability that a cash-flow anchor brings to an investment portfolio.
The low market rent compared to the FMR also suggests that there is limited risk of overpricing properties within the Section 8 program. Landlords can confidently set rents at the FMR level without fear of losing tenants due to unaffordable pricing. Additionally, the higher FMR relative to market conditions can help offset any potential management costs or vacancies that might occur.
While ZIP 50247 does have a renter share of 15.9%, which could be seen as a diversification opportunity, and a median income of $91,875, the most compelling aspect of this ZIP code is its role as a cash-flow anchor. The stability offered by the guaranteed FMR payments outweighs the potential for appreciation or diversification in this context.
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.