Location: Cerro Gordo 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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,220 | $203,702 | 0.6% | F |
U.S. Census Bureau data (2024)
ZIP 50469, located in Cerro Gordo County, IA metro, presents an opportunity for landlords and small-portfolio investors to include a cash-flow anchor in their Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2026 is set at $920, which stands significantly higher than the current market rent of $575. This creates a spread of $345 per unit, allowing investors to secure a reliable income stream that exceeds local market rates.
The median home value in ZIP 50469 is $204,289. For landlords, this means they can acquire properties at a reasonable cost, knowing that the rental income from Section 8 tenants will be higher than what the market currently offers. This strategy helps mitigate risks associated with property values and ensures steady cash flow, which is crucial for maintaining financial stability in a volatile real estate market.
While the ZIP code does not offer significant appreciation potential due to the lack of data on price-cut shares and days on market (DOM), it still provides a solid foundation for building a diversified portfolio. With a 19.2% renter share and a median income of $71,250, the area supports a mix of renters and homeowners, indicating a stable community where demand for affordable housing is likely to remain consistent.
Including ZIP 50469 in a Section 8 portfolio strategy is advisable for investors looking to ensure a dependable cash flow. The substantial difference between the FMR and market rent provides a clear advantage, making it easier to manage expenses and maintain profitability. Although there's limited upside for capital appreciation, the focus on cash flow anchors can help balance out a portfolio that might otherwise rely too heavily on appreciation plays or diversifiers.
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.