Location: Webster County, IA | Metro: Humboldt 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 | $670 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $177,255 | 0.68% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP code 50516 for Section 8 investments must evaluate several factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $920 can cover the debt service on a property valued at $174,744. This is crucial because if the FMR does not clear the debt service, the investment will not be profitable in the short term.
If the FMR of $920 clears the debt service, proceed to the second question: How does the market rent of $683 compare to the FMR? If the market rent is below the FMR, landlords can expect a positive cash flow from Section 8 tenants. However, if the market rent equals or exceeds the FMR, landlords may find themselves competing with non-subsidized rents, which could affect occupancy rates and the desirability of Section 8 tenants.
The third factor to consider is the demand for rental properties. In ZIP 50516, 11.7% of residents are renters. The days on market (DOM) is listed as N/A, indicating that there is insufficient data to assess how quickly properties are rented out. Despite this, the percentage of renters provides insight into the potential demand for rental units.
Does FMR $920 clear debt service on a $174,744 property? If yes, then the investment has a solid foundation. If no, then the investment is not advisable without further financial adjustments or subsidies.
Is market rent $683 above, at, or below FMR? If the market rent is below the FMR, it suggests a good opportunity for positive cash flow. If equal or above, it may indicate a competitive market where landlords need to balance the benefits of Section 8 against the higher costs of market-rate rentals.
Are 11.7% renters + N/A-day DOM enough demand? With only 11.7% of the population renting, demand may be limited. The lack of DOM data makes it difficult to gauge the speed at which units are filled, but the low rental percentage suggests that landlords might face challenges in maintaining consistent occupancy.
In summary, if the FMR of $920 covers the debt service, and the market rent is below the FMR, then there is potential for a profitable investment in ZIP 50516. However, the limited rental demand indicated by the 11.7% figure means that landlords should carefully weigh the risks. It depends on the landlord's ability to manage a property in a lower-demand area and their willingness to accept potentially slower turnover rates.
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.