Section 8 Fair Market Rent (FMR) for ZIP 50557 - 2027

Investment Score for ZIP 50557

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	$670
1 Bedroom	$710
2 Bedrooms	$930
3 Bedrooms	$1,190
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
3BR	$1,190	$173,853	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the provided data, ZIP 50557 (Lehigh, IA, Webster County, IA) can be considered a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920, which exceeds the current market rent of $816. This creates a positive spread that ensures landlords receive higher rental payments through the Section 8 program than they would from market-rate tenants.

The median home value in ZIP 50557 is $137,301, indicating a relatively affordable housing market. This affordability aligns well with the financial constraints often faced by Section 8 participants, making the area an attractive location for such a portfolio. Landlords who invest in properties within this ZIP code can expect stable and reliable rental income due to the guaranteed payment difference.

Furthermore, the median income in the area stands at $62,750, which suggests that there is a sufficient economic base to support a steady demand for subsidized housing. With a renter share of 30.9%, there is a notable portion of the population that is already accustomed to renting, which further supports the viability of a Section 8 investment strategy in this ZIP code.

The appreciation potential in ZIP 50557 is limited, as indicated by the N/A% price-cut share and N/A-day Days on Market (DOM). This means that while property values may increase over time, they are unlikely to appreciate significantly faster than the broader market. Therefore, this ZIP code is best suited for investors looking to generate consistent cash flow rather than those seeking rapid capital appreciation.

In summary, ZIP 50557 serves as a strong cash-flow anchor in a Section 8 portfolio due to the favorable spread between the FMR and market rent, combined with an affordable median home value and a stable economic environment.

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.