Location: Franklin 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $131,222 | 0.71% | D |
| 3BR | $1,150 | $183,605 | 0.63% | D |
| 4BR | $1,540 | $252,840 | 0.61% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP code 50475 in Sheffield, IA, under the Section 8 program are significant. Tenant turnover is a critical issue, with the market rent at $704 being notably lower than the Fair Market Rent (FMR) of $920 for the fiscal year 2026 in the metro area. This disparity can lead to frequent changes in tenants, increasing the administrative burden and potentially reducing rental income stability.
Vacancy exposure is another concern, though data on days on market (DOM) is currently unavailable, which makes it difficult to predict how long properties might remain vacant. In areas where the typical home value is around $177,161 and the median income stands at $70,938, deferred maintenance can be a substantial risk factor. Landlords must be prepared to invest in regular upkeep and repairs to maintain property standards required by the Section 8 program.
However, these risks are somewhat mitigated by the high concentration of renters in the area, with a 21.0% renter share. High renter density often translates into a higher demand for housing vouchers, which can provide a steady stream of tenants who are committed to paying their portion of the rent through the voucher system. This ensures a consistent income flow and reduces the likelihood of extended vacancy periods.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 50475 is moderate.
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.