Location: Pocahontas County, IA | Metro: Palo Alto County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50562, located in Pocahontas County, Iowa, reveals several key points that are crucial for landlords and small-portfolio investors.
First, regarding the rent math, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,380. This figure is notably higher than the current market rent of $1,125 based on Census ACS data. Landlords should note that the FMR is a benchmark used for HUD programs and does not necessarily reflect the actual rental market conditions. Therefore, while the FMR suggests a higher potential rent, the current market rate indicates a reality that must be considered.
Second, the acquisition affordability in ZIP 50562 is anchored by a median home value of $158,722. With the average days on market (DOM) being listed as N/A and the percentage of homes needing price cuts also marked as N/A, it's challenging to assess the typical transaction dynamics. However, the relatively low median home value implies that property acquisition costs could be manageable for investors, especially compared to larger metropolitan areas where costs tend to be significantly higher.
Third, concerning tenant demand, the ZIP code has a total population of 377, with 22.0% of residents being renters. This indicates a modest but present demand for rental properties. While the percentage of renters is not exceptionally high, the low median home value might suggest that a portion of the population finds homeownership unaffordable, thus relying on rentals.
In summary, ZIP 50562 presents a scenario where the rent math does not align perfectly with HUD benchmarks but reflects realistic market conditions. Property acquisition appears affordable due to the low median home value, though detailed transaction data is lacking. Tenant demand is limited but exists, driven by the percentage of residents who rent. For investors, the opportunity lies in balancing the lower market rents against the potentially lower acquisition costs, with the understanding that the rental market is smaller and may require careful tenant selection to ensure steady occupancy.
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.