Location: Mahaska County, IA | Metro: Jasper 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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $205,398 | 0.47% | F |
| 3BR | $1,290 | $262,145 | 0.49% | F |
| 4BR | $1,350 | $316,072 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50251, located in Sully, IA, within the Mahaska County metro area, reveals several key points for landlords and small-portfolio investors.
Firstly, regarding the rent math, the comparison between the Fair Market Rent (FMR) set at $880 for the fiscal year 2024 and the market rent of $831 based on Census ACS data shows that landlords can expect a slight premium when renting properties under the Section 8 program. This indicates that the rent math does work in favor of landlords, allowing them to potentially earn above the average market rate.
Secondly, the acquisition cost of homes in the area is quite affordable, with a median home value of $255,943. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that the local real estate market may not be highly competitive. This could mean that acquiring properties is straightforward but might also imply slower sales or less aggressive pricing strategies by sellers.
Lastly, there is a notable tenant demand in ZIP 50251. With a total population of 1,365 and a renter share of 18.3%, landlords can expect a steady stream of potential tenants. Although the renter share is not exceptionally high, it still represents a significant portion of the population, ensuring a reasonable pool of applicants for Section 8 housing.
In summary, ZIP 50251 presents a favorable environment for landlords and small-portfolio investors due to the positive rent math, affordable acquisition costs, and sufficient tenant demand. The slightly higher FMR compared to the market rent ensures profitability, while the median home value indicates an accessible entry point into the real estate market. Despite the limited competition metrics, the existing tenant base supports the viability of Section 8 investments in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.