Location: Hancock County, IA | Metro: Hancock County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 50439 presents several challenges that landlords and small-portfolio investors must consider. Tenant turnover can be a significant issue due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $920 for fiscal year 2026 in the metro area. This gap could lead to higher tenant mobility as some may seek more affordable options outside the voucher system.
Vacancy exposure is another critical concern. The average days on market (DOM) is currently unavailable, which suggests a lack of comprehensive data on how quickly rental units are filled in this area. This uncertainty can result in extended periods where a unit remains unoccupied, impacting cash flow and profitability.
The risk of deferred maintenance is also notable. With a typical home value of $111,779 and a median income of $94,167, residents might struggle to afford substantial repairs or upgrades without assistance. Landlords will need to be prepared for ongoing maintenance costs to keep properties in good condition, which can be financially demanding.
Despite these risks, there is a positive aspect to consider. The renter share in ZIP 50439 is 6.2%, indicating a relatively high concentration of renters. High renter density often correlates with greater demand for housing vouchers, potentially stabilizing occupancy rates over time.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 50439 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and maintenance costs, the high renter density provides a buffer against prolonged vacancies.
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.