Location: Worth 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 | $690 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $146,923 | 0.63% | D |
| 3BR | $1,190 | $206,390 | 0.58% | F |
| 4BR | $1,230 | $276,406 | 0.44% | F |
| 5BR | $1,427 | $391,181 | 0.36% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 50461 in Osage, Iowa, include significant tenant turnover due to the disparity between the market rent of $722 and the Fair Market Rent (FMR) of $920 for fiscal year 2026 in the metro area. This gap suggests that tenants may struggle to afford higher rents outside of subsidized programs, leading to frequent changes in occupancy.
Vacancy exposure is another concern, as the days on market (DOM) for properties in this area is listed as N/A. This lack of data indicates that there may be challenges in predicting how long it takes to fill vacancies, which can impact cash flow and overall profitability. Additionally, the typical home value of $199,813 combined with a median income of $68,886 presents a deferred-maintenance risk. Landlords might face difficulties in maintaining properties to meet Section 8 standards without adequate financial support from tenants.
Despite these challenges, the high renter share of 21.1% in Osage, IA, points towards a robust demand for rental units, including those supported by housing vouchers. This high concentration of renters typically translates into a stable pool of potential Section 8 tenants, reducing the risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 50461.
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.