Location: Mitchell County, IA | Metro: Howard 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 | $970 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $202,758 | 0.64% | D |
| 3BR | $1,740 | $227,454 | 0.76% | D |
| 4BR | $1,930 | $252,281 | 0.77% | D |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 50466 (Riceville, IA) often raise several key concerns regarding the feasibility of investing in this area. Let's address these concerns directly using available data.
Will FMR $1,120 (metro FY 2026) cover the mortgage on a $227,477 home?
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 50466 is projected to be $1,120 in fiscal year 2026. To determine if this will cover the mortgage on a $227,477 home, we must consider the typical mortgage payment. Assuming a 30-year fixed-rate mortgage with a 4% interest rate, the monthly payment would be approximately $1,085. This means that the FMR could indeed cover the mortgage payments, leaving a slight margin for property taxes, insurance, and maintenance.
Is there enough renter demand at 28.5%?
Renter demand in Riceville is measured at 28.5%. While this percentage is relatively low, it's important to note that the rental vacancy rate in the area is zero, indicating a stable demand among the existing renters. However, the data does not provide a complete picture of future demand trends or the potential impact of economic changes on this figure. Investors should closely monitor local economic indicators and job market trends to gauge future renter demand accurately.
Will vouchers keep pace with $775 market rents?
The current market rent for ZIP 50466 is around $775 per month. Vouchers are designed to help low-income families afford housing, but their adequacy depends on the specifics of the voucher program and the local cost of living. The Fair Market Rent (FMR) for the area is expected to rise to $1,120 by FY 2026, suggesting that market rents will likely increase. Whether vouchers will keep pace with this increase is uncertain based on the provided data. Investors should check the local HUD office for updates on voucher amounts and availability to ensure they remain competitive with market rents.
In conclusion, while the data suggests that the FMR can cover mortgage payments, the low renter demand percentage and the uncertainty surrounding future voucher amounts present challenges. Careful monitoring of local economic conditions and voucher policies will be crucial for maintaining a successful investment portfolio in ZIP 50466.
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.