Section 8 Fair Market Rent (FMR) for ZIP 50268 - 2027

Location: Mahaska County, IA | Metro: Keokuk County, IA

Investment Score for ZIP 50268

A+

Monthly Rent (2BR)

$930

Median Price (2BR)

$55,557

1% Rule

1.67%

Annual Yield

20.09%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$690
1 Bedroom	$760
2 Bedrooms	$930
3 Bedrooms	$1,160
4 Bedrooms	$1,250
5 Bedrooms	$1,450
6 Bedrooms	$1,624
7 Bedrooms	$1,754
8 Bedrooms	$1,842

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$930	$55,557	1.67%	A+
3BR	$1,160	$122,330	0.95%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

908

Median Household Income

$59,118

Housing Units

474

Renter Percentage

23.8%

Occupancy Rate

82.3%

Renter Occupied

The area surrounding ZIP code 50268, located in What Cheer, Iowa, offers a stable environment for real estate investment, particularly for those interested in the rental market. The town's modest size and rural setting provide a niche opportunity for investors looking to capitalize on the local demand for affordable housing.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $920, indicating a growing trend towards higher rental rates.
The actual market rent, according to the latest Census American Community Survey (ACS), stands at $740, suggesting that there is room for rents to rise closer to the FMR level.
The median home value in the area is $112,536, which is relatively low compared to many other regions, making it accessible for first-time buyers and investors alike.
Renters make up 23.8% of the local population, pointing to a significant portion of residents who prefer renting over owning, thus providing a steady demand for rental properties.
The median income of the residents is $59,118, which is sufficient to support the current rental rates but may limit the potential for substantial increases without corresponding wage growth.
While the exact days on market (DOM) data is not available, the combination of modest home values and a sizeable renter population suggests that rental properties in What Cheer can be quickly leased out.

In summary, What Cheer, Iowa presents a balanced market with a notable gap between the fair market rent and the current market rent, indicating potential for upward adjustments. The median home value is low, which can be advantageous for both property acquisition and tenant affordability. With nearly a quarter of the population being renters and a median income that supports the current rental landscape, investors should focus on properties that can attract tenants willing to pay closer to the FMR levels. This strategy will likely yield positive returns given the stability of the local economy and the existing demand for rental housing.

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.