Location: Webster County, IA | Metro: Webster 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 | $680 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $730 | $54,517 | 1.34% | A |
| 2BR | $950 | $91,988 | 1.03% | B |
| 3BR | $1,220 | $149,151 | 0.82% | C |
| 4BR | $1,590 | $204,483 | 0.78% | D |
| 5BR | $1,844 | $294,527 | 0.63% | D |
U.S. Census Bureau data (2024)
In Fort Dodge, Iowa, represented by ZIP code 50501, the real estate landscape is characterized by a median home value of $128,652. This figure, coupled with the observation that only 0.2% of listings have seen reductions in price, indicates a market where sellers currently hold significant pricing power. The low percentage of price reductions suggests that demand remains steady relative to supply, which supports the notion that homeowners can maintain their asking prices without substantial concessions.
The median days on market (DOM) stands at 42 days, a metric that further reinforces the idea of a seller-friendly environment. A shorter DOM typically points towards a robust demand for housing, where homes are selling relatively quickly. This dynamic, when considered alongside the median home value, suggests that the market is likely to remain stable, if not slightly bullish, over the next 12 to 24 months. Landlords and small-portfolio investors should expect to see consistent rental income from properties in this area, as homeownership remains affordable and attractive.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $940, compared to the current market rate of $804 (ZORI). This gap between the projected FMR and the actual ZORI signifies an upward trend in rental values, indicating that landlords can potentially increase rents to align with the expected FMR. For long-term investors, this setup implies a realistic appreciation thesis, as both home values and rental rates are poised to grow, albeit gradually.
However, it's important to note that while the data suggest a positive outlook, the actual performance of individual assets will depend on various factors including location within the ZIP code, property condition, and broader economic conditions. Investors should focus on properties that offer good value and potential for appreciation, given the current pricing power and the anticipated growth in rental rates.
The combination of a stable median home value, minimal price reductions, and a short DOM signals a market where investors can expect to maintain or slightly increase their asset values over the coming years. Additionally, the rental market shows signs of gradual improvement, offering a solid foundation for long-term investment strategies in Fort Dodge, Iowa.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.