Location: Webster County, IA | Metro: Calhoun County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The ZIP code 50538 presents several challenges for landlords considering Section 8 investments. Firstly, the tenant turnover rate is unknown due to the lack of market rent data, but the Fair Market Rent (FMR) for the area is set at $1,060 per month for fiscal year 2026, which reflects the metro average. This uncertainty can lead to unpredictable cash flows if tenants frequently move out and new ones take longer to secure. Secondly, vacancy exposure is a significant concern because the days on market (DOM) for rental properties in the area is also not available. This makes it difficult to estimate how long a property might remain vacant between tenancies, increasing financial risk.
The deferred maintenance exposure is another critical issue. With a typical home value of $123,115 and a median income of $62,344, many homeowners may struggle to keep up with necessary repairs and maintenance, especially if their income is solely dependent on rental income. This could result in higher maintenance costs for landlords who inherit properties that have been neglected.
However, these risks must be weighed against the high concentration of renters in the area. The renter share is 11.3%, indicating a substantial number of potential tenants who rely on rental housing. High renter density often correlates with higher demand for Section 8 vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. Additionally, the presence of a large number of renters suggests a robust local rental market, which can help mitigate some of the financial risks associated with tenant turnover and vacancy periods.
In conclusion, the risks associated with Section 8 investments in ZIP 50538 are moderate. While there are uncertainties regarding tenant turnover and vacancy exposure, the high renter share provides a strong foundation for consistent demand and income stability.
Data Sources: FMR data from HUD (2027). 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.