Location: Marshall County, IA | Metro: Waterloo-Cedar Falls, 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 | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $116,719 | 0.81% | C |
| 3BR | $1,230 | $146,531 | 0.84% | C |
U.S. Census Bureau data (2024)
The potential downsides of investing in Section 8 housing in ZIP 50258, Union, IA, must be carefully considered. Tenant turnover is likely to be higher when comparing the market rent of $900 to the Fair Market Rent (FMR) of $860 for fiscal year 2024. This discrepancy can lead to challenges in attracting tenants who qualify for the lower FMR, potentially increasing vacancy periods. The vacancy exposure is heightened by the lack of data on days on market (DOM), which makes it difficult to predict how long a property might remain vacant between tenants. Additionally, the typical home value of $192,824 paired with a median income of $83,988 suggests that many residents may struggle to afford necessary maintenance, thereby increasing the risk of deferred maintenance issues for landlords.
However, these risks are balanced by a significant factor: the 18.3% share of renters in the area. High renter density often correlates with a greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of qualified tenants. This demand can mitigate the risks associated with higher turnover and vacancy periods, making the investment more viable despite the initial concerns.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 50258, Union, IA, is moderate.
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.