Location: Hancock 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 | $690 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,120 | $132,879 | 0.84% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 50449 stands at $59,524. Considering the market rate rental price of $477 based on Census ACS data, it becomes evident that the financial landscape for renters in this area is quite challenging. To put this into perspective, the monthly median income would be approximately $4,960 ($59,524 divided by 12 months), suggesting that the average renter spends nearly 10% of their monthly income on rent alone, which is a significant portion.
In contrast, the federal payment standard for housing vouchers in the metro area for fiscal year 2026 is set at $920. This figure is notably higher than the market rate of $477, indicating a substantial affordability gap for low-income households. The discrepancy highlights the struggle many renters face in finding affordable housing without assistance.
Given that only 7.2% of the 785 residents are renters, the competition among landlords for tenants is likely to be fierce. Landlords must consider the limited pool of potential tenants and the likelihood that many may require rental assistance to cover the cost of living in this area.
For landlords evaluating between voucher tenants and those paying cash, the data suggests that accepting voucher payments could be a strategic advantage. While voucher tenants provide a guaranteed income stream that aligns closely with the federal standards, cash-paying tenants might be harder to come by due to the high cost of living relative to the median income. Accepting vouchers ensures a stable occupancy rate and income, making it a prudent choice in an area where housing affordability is a pressing issue.
Takeaway: In ZIP code 50449, landlords should recognize the value of accepting housing vouchers. The limited number of renters and the affordability gap make voucher tenants a reliable option for maintaining occupancy and steady income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.