Location: Lucas County, IA | Metro: Lucas County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
U.S. Census Bureau data (2024)
ZIP code 50272 in the Lucas County, IA metro area serves as an effective cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the market rent stands at $631. This creates a significant spread of $339 per unit, allowing landlords to maintain positive cash flow despite the participation in the Section 8 program.
The median home value is currently not available, but this does not impact the decision to focus on rental income. With a guaranteed rent through the Section 8 program, landlords can rely on steady income without the need for speculative investments in property appreciation. The lack of data on home value appreciation and days on market (DOM) suggests that this ZIP code is not particularly attractive as an appreciation play, given the absence of trends indicating rising property values or quick sales.
However, the ZIP code does offer some diversification benefits. The renter share is 21.8%, indicating a moderate demand for rentals. Additionally, the median household income of $45,000 supports the viability of the Section 8 program in the area, ensuring a stable tenant pool that can benefit from subsidized housing. Despite these diversification elements, the primary role of ZIP 50272 in a Section 8 portfolio should be as a cash-flow anchor due to the substantial difference between FMR and market rents.
To summarize, ZIP 50272 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords will benefit from the $339 spread between the FMR and market rents, ensuring consistent and reliable income. While it offers some diversification through its renter share and median income levels, the most compelling reason to include this ZIP code in your investment strategy is its ability to generate positive cash flow, which is essential for maintaining a robust and sustainable portfolio.
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.