Location: Webster County, IA | Metro: Boone County, 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 | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $251,299 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50249 in Webster County, Iowa, reveals several key insights for landlords and small-portfolio investors.
Firstly, the rent math does not favor landlords. The Fair Market Rent (FMR) set at $860 for fiscal year 2024 contrasts sharply with the market rent reported by the Census ACS at $625. This indicates that landlords may struggle to charge the higher FMR rate without losing tenants to more competitively priced options.
Secondly, the acquisition of properties appears to be reasonably affordable. With a median home value of $193,666, potential investors can secure a property at a lower cost compared to many other regions. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts suggests that the local real estate market might be less active or more stable, but it also means there's limited insight into how quickly homes sell and whether they need to be discounted to attract buyers.
Lastly, there is a modest tenant demand. The population of ZIP 50249 stands at 1,312, with 15.1% being renters. While this percentage shows that there is a base of tenants, it is relatively low, indicating that competition for rental units may not be intense.
Verdict: ZIP 50249 offers an affordable entry point for acquiring real estate, with a median home value of $193,666. However, the discrepancy between the FMR and market rent rates poses a challenge for maximizing income. Tenant demand is present but not robust, suggesting that while it may be possible to find tenants, the competitive advantage in terms of rental rates is limited. Overall, the area presents opportunities for cautious investment, particularly for those looking to purchase rather than lease at inflated rates.
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.