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 | $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 | $178,229 | 0.58% | F |
| 3BR | $1,450 | $274,360 | 0.53% | F |
| 4BR | $1,750 | $369,457 | 0.47% | F |
| 5BR | $2,030 | $455,061 | 0.45% | F |
U.S. Census Bureau data (2024)
In Story City, Iowa, the real estate market presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $278,886, which serves as a foundational metric for assessing the overall health and stability of the housing market. Despite the median home value, the lack of percentage data on reduced listings and the median days on market (DOM) suggest a balanced market where neither buyers nor sellers hold a significant advantage.
The Federal Market Rent (FMR) for ZIP 50248 in fiscal year 2024 is set at $890. This figure contrasts with the current market rent of $1,021, as reported by the Census Bureau's American Community Survey (ACS). This disparity indicates that there is a premium in the rental market, suggesting that landlords can maintain or slightly increase their rents above the FMR without risking vacancy rates, provided they offer competitive amenities and conditions.
For long-term investors, the setup implies a cautious approach towards capital appreciation. While the median home value does not indicate a rapid increase in property values, the gap between the FMR and market rent suggests a steady income potential through rental yields. The lack of data on reduced listings and DOM also points to a stable market, where sudden shifts in favor of either buyers or sellers are unlikely. This stability can be beneficial for those looking to hold properties for extended periods, as it reduces the risk of significant fluctuations in property value and rental income.
The market dynamics in Story City, therefore, favor a strategy focused on rental income rather than speculative gains from property appreciation. Landlords and investors should consider maintaining their properties to meet market standards and keep rental prices within the observed range to ensure a steady stream of income. Additionally, the current market conditions imply that any significant increase in property values will likely be gradual, aligning with broader economic trends rather than local market anomalies.
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.