Location: Worth County, IA | Metro: Cerro Gordo County, IA
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 | $770 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $770 | $72,729 | 1.06% | B |
| 2BR | $950 | $122,910 | 0.77% | D |
| 3BR | $1,250 | $165,035 | 0.76% | D |
| 4BR | $1,520 | $248,800 | 0.61% | D |
| 5BR | $1,763 | $390,096 | 0.45% | F |
U.S. Census Bureau data (2024)
A first-time Section 8 landlord in ZIP code 50401 of Mason City, IA, should be aware of several potential pitfalls. The primary concern is tenant turnover, which can be higher when the market rent is set at $875 compared to the Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026. This difference in rent levels may lead to tenants seeking better deals elsewhere, increasing the frequency of turnovers and associated costs.
Vacancy exposure is another significant risk factor. With an average Days on Market (DOM) of 38 days, landlords might face periods where units remain unoccupied, leading to lost rental income. In ZIP 50401, where the typical home value is $154,116, maintaining properties can be challenging, especially with a median household income of $66,072. Deferred maintenance issues can arise if tenants do not take proper care of the property due to financial constraints or lack of responsibility, potentially resulting in costly repairs and renovations.
Despite these risks, there are mitigating factors that make ZIP 50401 a viable option for Section 8 investments. The renter share in Mason City is 33.7%, indicating a high concentration of renters who may be more likely to utilize housing vouchers. This high demand for rental properties often translates into a steady stream of qualified tenants, reducing the likelihood of extended vacancies.
In summary, while there are notable risks such as tenant turnover, vacancy exposure, and deferred maintenance, the high renter density suggests strong demand for Section 8 properties. These factors collectively indicate a moderate risk for a first-time Section 8 landlord in Mason City, IA, ZIP 50401.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.