Location: Wright County, IA | Metro: Wright 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 | $1,100 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $112,107 | 0.83% | C |
| 3BR | $1,100 | $160,445 | 0.69% | D |
| 4BR | $1,220 | $211,945 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 50525, centered around Clarion, IA, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $920, whereas the Census ACS reports the average market rent at $762. This discrepancy amounts to a difference of $158 per month, representing an increase of approximately 20.7% over the market rent.
This gap makes the area a compelling yield play for landlords and small-portfolio investors. The higher FMR means that voucher holders can potentially cover rents above the open-market rate, increasing the profitability of rental properties. Given that 28.5% of the population in Clarion are renters, there is a substantial pool of potential tenants who could benefit from the Section 8 program. Additionally, with a median home value of $152,863 and a median income of $67,250, the local economy supports a scenario where many residents rely on rental assistance to afford suitable housing.
The key advantage here is that landlords can charge closer to the FMR, which is higher than what the market dictates, thus improving their cash flow and investment returns. However, it's important to note that the Section 8 program comes with certain requirements and regulations that must be adhered to, including maintaining property standards and undergoing regular inspections. Despite these considerations, the financial incentive of renting at or near the FMR of $920, compared to the market rate of $762, makes this a strategic opportunity for those willing to engage with the program.
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.