Location: Wright County, IA | Metro: Franklin County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 50420 within the Wright County, IA metro area reveals several key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for the metro scope in fiscal year 2026 is $920. This figure is critical for understanding the financial landscape for voucher tenants in the area.
Unfortunately, the current market rent for ZIP 50420 is not available, which makes direct comparison challenging. However, using the HUD FMR as a benchmark, it can be stated that voucher tenants will generally cashflow at FMR levels. This means that landlords can expect to cover their mortgage payments, maintenance costs, and other expenses without significant financial strain when renting to voucher holders at the FMR rate.
To further analyze the investment potential, consider the median home value of $167,583. By deriving a rent-to-price ratio, we find that the annual rent based on FMR would be approximately $11,040. This translates to a rent-to-price ratio of about 6.6%, indicating a relatively modest return on investment compared to the purchase price. For investors looking to maximize cash flow, this ratio suggests that they should focus on premium units or areas where market rents exceed the FMR to achieve better financial outcomes.
The lack of specific data on days on market (DOM) and price-cut share does not significantly impact the analysis given the focus on rental dynamics. However, it's worth noting that these metrics could provide additional context on the local housing market's health and volatility.
In conclusion, the strongest investor angle in ZIP 50420 is likely to be stability. With voucher tenants covering the majority of the FMR, landlords can expect consistent, government-backed rental income, which is particularly valuable in uncertain economic times. While cash flow and appreciation may be secondary considerations, the predictability of Section 8 rents offers a solid foundation for long-term real estate investments.
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.