Location: Floyd County, IA | Metro: Floyd 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 | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $202,288 | 0.7% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 50435 in the Floyd County, IA metro area reveals several key points. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $1,180. This figure is significantly higher than the average market rent reported by the Census ACS, which stands at $655. This substantial gap indicates that voucher tenants can cashflow comfortably at the HUD FMR, even in the most basic units, without requiring any premium features.
To further contextualize this analysis, the median home value in ZIP 50435 is $198,841. Using this figure, we can calculate the rent-to-price ratio. Given the HUD FMR of $1,180, the annual rent would be approximately $14,160. Dividing this by the median home value yields a rent-to-price ratio of about 7.13%. This ratio suggests that rental properties are relatively undervalued compared to their purchase price, making it an attractive option for investors looking to maximize returns through rental income.
In terms of the broader real estate market, the data shows that the median days on market (DOM) is not available (N/A), nor is the percentage of homes that have had their prices cut (N/A%). However, these metrics are less critical given the favorable rent-to-price ratio and the significant difference between HUD FMR and market rent. The primary focus for investors should be on the robust cashflow potential provided by the current disparity between voucher amounts and local rents.
The strongest investor angle in ZIP 50435 is cashflow. The ability to lease properties well below the HUD FMR ensures a healthy profit margin for landlords and small-portfolio investors, making it an ideal location for those prioritizing steady, reliable income over short-term appreciation or long-term stability.
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.