Location: Winnebago County, IA | Metro: Hancock 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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $129,792 | 0.86% | C |
| 3BR | $1,380 | $172,711 | 0.8% | D |
| 4BR | $1,870 | $187,250 | 1% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 50423, Britt, IA, reveals a significant gap between the federal market rent (FMR) and the actual market rent. Using the annualized figures, the 2BR FMR of $1,200 translates into an annual rental income of $14,400. Against the median home value of $153,393, this yields a gross rental yield of approximately 9.4%. This is calculated by dividing the annual rental income by the median home value: $14,400 / $153,393 = 0.0939 or 9.4%.
In contrast, the Census ACS reported market rent of $773 per month results in an annual rental income of $9,276. This implies a gross rental yield of roughly 6.0% when compared to the median home value: $9,276 / $153,393 = 0.0605 or 6.0%.
The 20.2% renter density suggests that while there is a reasonable number of renters in the area, it's not overwhelmingly high. The N/A-day DOM (days on market) indicates that data regarding how quickly properties are selling or renting is unavailable, which limits our ability to assess the liquidity of the investment. However, the disparity between the FMR and market rent rates provides a clear indication of which scenario is more realistic for investors.
The 9.4% gross rental yield based on FMR is likely unattainable in the real estate market of Britt, IA. Landlords and small-portfolio investors should focus on the 6.0% gross rental yield derived from the market rent of $773 per month. This figure is grounded in the actual rental behavior of the local population and is therefore more reflective of what can be realistically expected from a Section 8 property in this ZIP code.
To summarize, the Section 8 cap-rate for ZIP 50423 leans towards a gross rental yield of around 6.0%, rather than the higher 9.4% based on FMR. This lower yield is more in line with the current market conditions and renter behavior in the area. Investors should use this 6.0% yield as a baseline for their financial projections and decision-making process.
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.