Location: Marion County, IA | Metro: Mahaska County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 50256 provides a clear picture of potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $960 per month. This translates into an annualized income of $11,520. Given the median home value in the area is $178,095, the implied gross yield from the FMR scenario is approximately 6.47%. This calculation is derived by dividing the annual rental income by the median home value.
In contrast, when considering the market rent, the data is currently not available (N/A), which makes it impossible to provide an exact figure for comparison. However, if the market rent were higher than the FMR, the gross yield would also be higher, indicating a potentially better return on investment for those willing to navigate the complexities of market-rate tenancy.
Given the 0.0% renter density in ZIP 50256, it's evident that the area has a very low concentration of renters. This suggests that the FMR scenario is more likely to reflect the reality of the rental market in this location. A low renter density implies fewer tenants looking for housing, making it difficult to achieve higher market rents consistently. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data, further supporting the reliance on FMR for a more accurate investment assessment.
The gross yield comparison between the FMR and the hypothetical market rent scenario is concrete. With a known FMR of $960 per month, the investment return can be reliably calculated. While market rents could offer a higher gross yield, the lack of data and the low renter density in ZIP 50256 make the FMR scenario the most realistic for investors. This means that for a property valued at $178,095, the expected annual rental income should be around $11,520, leading to a gross yield of about 6.47%.
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.