Section 8 Fair Market Rent (FMR) for ZIP 50530 - 2027

Location: Webster County, IA | Metro: Boone County, IA HUD Metro FMR Area

Investment Score for ZIP 50530

D
Monthly Rent (2BR)
$930
Median Price (2BR)
$129,159
1% Rule
0.72%
Annual Yield
8.64%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$710
1 Bedroom$710
2 Bedrooms$930
3 Bedrooms$1,290
4 Bedrooms$1,550
5 Bedrooms$1,798
6 Bedrooms$2,014
7 Bedrooms$2,175
8 Bedrooms$2,284

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $930 $129,159 0.72% D
3BR $1,290 $153,280 0.84% C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,090
Median Household Income
$73,250
Housing Units
535
Renter Percentage
28.8%
Occupancy Rate
88.2%
Renter Occupied
136

The ZIP code 50530, located in Dayton, IA, is situated within the broader Webster County, IA metro area. To analyze its position relative to other ZIP codes in Webster County, let's examine the key figures provided:

The Fair Market Rent (FMR) for ZIP 50530 in fiscal year 2024 is set at $860. This figure represents the maximum amount that a household receiving Section 8 assistance can pay for rent. In contrast, the market rent in ZIP 50530 stands at $523, which is significantly lower than the FMR. This suggests that landlords in this ZIP code could potentially benefit from the difference between the FMR and the actual market rent, making it an attractive area for Section 8 tenants.

The median home value in ZIP 50530 is $146,398. This is a critical metric for assessing the overall cost of living and investment potential in the area. Compared to other ZIP codes in Webster County, this home value might be considered average or slightly below average, depending on the specific distribution of home values across the county.

The renter share in ZIP 50530 is 28.8%, indicating a notable portion of the population rents their homes rather than owning them. This percentage is higher than what is typically seen in many rural areas, suggesting a demand for rental properties. When combined with the below-metro home values, it points to ZIP 50530 being a sweet spot for Section 8 participants looking for affordable housing options.

In summary, ZIP 50530 appears to be a value pocket within the Webster County, IA metro. The discrepancy between the FMR and the market rent, along with the relatively low home values and higher-than-average renter share, supports this classification. Landlords and small-portfolio investors should consider this area as it offers opportunities to attract Section 8 tenants while maintaining competitive pricing in the local real estate market.

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.