Location: Mitchell 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 | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $133,473 | 0.75% | D |
| 3BR | $1,240 | $189,601 | 0.65% | D |
| 4BR | $1,490 | $248,922 | 0.6% | F |
U.S. Census Bureau data (2024)
14.5% of the population in ZIP 50458, Nora Springs, IA, are renters, indicating a modest demand for rental properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, which represents the maximum amount a Section 8 voucher holder can pay for housing. However, the actual market rent, as per the Census ACS, is $770, suggesting that landlords could potentially benefit from the higher subsidy rate. The median home value in this area stands at $185,215, reflecting a stable residential market. With a median income of $99,643, residents have a reasonable financial cushion, though it's important to note that this figure includes both homeowners and renters.
The disparity between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors. By renting properties at the market rate of $770, they can secure tenants who benefit from the higher subsidy of $1,020, thus ensuring a steady cash flow without overpricing their units. The lack of specific data on days on market (DOM) and price-cut share indicates that the rental market is relatively stable, without significant fluctuations in vacancy rates or pricing strategies.
Given the favorable FMR compared to the market rent, the modest renter share, and the stable median home value, investing in Section 8 properties in ZIP 50458 appears to be a prudent decision. It allows for maintaining competitive rents while leveraging the federal subsidy to ensure occupancy and consistent revenue.
Verdict: Invest in Section 8 properties in ZIP 50458.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.