Location: Wright County, IA | Metro: Cerro Gordo County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 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)
The ZIP code 50457 presents several challenges for potential Section 8 landlords. Firstly, tenant turnover is a significant concern due to the disparity between the market rent of $631 and the Federal Market Rent (FMR) of $920 for fiscal year 2026 in the metro area. This difference can lead to higher churn rates as tenants seek more affordable housing options. Secondly, the vacancy exposure is notable since the days on market (DOM) data is currently unavailable, which suggests an unstable rental market where properties might remain vacant for extended periods. Additionally, the deferred maintenance exposure is substantial. With a typical home value of $105,186 and a median income of $47,250, many homeowners may struggle to keep up with necessary repairs and maintenance, potentially affecting property quality and tenant satisfaction.
Despite these risks, there are factors that mitigate the downside. The ZIP code has a 22.2% renter share, indicating a high concentration of renters who often rely on housing vouchers. This high density of renters typically translates into a robust demand for Section 8 housing, which can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies. Furthermore, the strong demand for rental properties can offset some of the financial risks associated with lower market rents and the need for ongoing maintenance.
In conclusion, while there are notable risks, the high renter share and strong demand for Section 8 housing in ZIP 50457 suggest a moderate risk for a first-time Section 8 landlord. Careful management and attention to property upkeep will be crucial to success in this market.
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.