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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 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 | $1,210 | $186,146 | 0.65% | D |
U.S. Census Bureau data (2024)
A household in ZIP code 50479, with a median income of $68,750, faces significant challenges in affording the market rate rent of $839. This figure represents the Census Bureau's American Community Survey (ACS) data on typical rental costs. However, when comparing this to the Fair Market Rent (FMR) set at $920 for the metro area in fiscal year 2026, it becomes clear that the cost of housing exceeds the average household's ability to pay.
The affordability gap is stark: at $839 per month, the median rent already consumes a substantial portion of the median income. With an FMR of $920, the disparity widens, indicating that many residents would struggle to meet these higher standards without financial assistance. Given that only 12.8% of the 655-person population are renters, competition among landlords is likely intense, as they vie for a limited pool of potential tenants.
This competition is further influenced by the availability of Section 8 vouchers. The voucher payment standard at $920 means that landlords who accept vouchers will have a steady stream of tenants willing to pay this amount. However, those who prefer cash-paying tenants must consider whether the local market can support rents above the median but below the FMR.
Takeaway for landlords: Accepting Section 8 vouchers can ensure a reliable tenant base willing to pay $920 per month. For those opting to seek out cash-paying tenants, rents should be kept close to the median market rate of $839 to attract and retain residents given the local income levels. Landlords must weigh the benefits of guaranteed income from vouchers against the potentially higher but less secure rents from cash-paying tenants.
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.