Location: Kossuth County, IA | Metro: Humboldt County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
U.S. Census Bureau data (2024)
The ZIP code 50558 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with market rents at $873 falling far below the Fair Market Rent (FMR) of $1,360 for the metro area in fiscal year 2026. This disparity suggests that tenants who qualify for Section 8 may struggle to find other housing options, potentially leading to frequent moves and higher vacancy rates.
Vacancy exposure is another issue, as the Days on Market (DOM) data is not available. This makes it difficult to predict how long properties might remain vacant between tenants, increasing financial risk for landlords. Additionally, the typical home value in the area stands at $128,184, while the median income is $68,750. These figures indicate a potential challenge in maintaining properties due to the relatively high cost of repairs and improvements compared to the income level of residents, which could lead to deferred maintenance issues.
Despite these risks, there are factors that mitigate the overall investment risk. The renter share in ZIP 50558 is 18.1%, which is notably high. High renter density often correlates with increased demand for rental properties, including those that accept Section 8 vouchers. This can provide a steady stream of qualified tenants, reducing the likelihood of extended vacancies.
In conclusion, the risks associated with Section 8 investments in ZIP 50558 include high tenant turnover, uncertain vacancy periods, and potential deferred maintenance due to the economic conditions. However, the high renter share offers a counterbalance by ensuring a robust pool of tenants. Given these considerations, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.