Location: Clay County, IA | Metro: Buena Vista County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The ZIP code 50565 is situated in a rural area of Iowa, characterized by a small population of 380 residents. Only 11.0% of these residents are renters, indicating a predominantly owner-occupied community. The median household income here is $51,875, which is modest but reflective of the local economy. The median home value stands at $97,324, suggesting that homes in this area are relatively affordable.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 50565 is set at $1,080 for the fiscal year 2026, which is notably higher than the current market rent of $817 as reported by the Census Bureau's American Community Survey. This discrepancy presents an opportunity for landlords and small-portfolio investors who can leverage the higher FMR rates offered through the Section 8 Housing Choice Voucher program.
The low percentage of renters and the modest median income imply that the demand for affordable housing is limited. However, for those willing to participate in the Section 8 program, there is potential to benefit from the guaranteed rental income, albeit with some administrative overhead. For a hands-off operator, the area may not be ideal due to the limited number of eligible tenants and the need for compliance with federal guidelines.
On the other hand, a hands-on investor looking to add value could potentially improve properties to command rents closer to the FMR, thereby increasing profitability. This approach would require a deeper understanding of the local market and possibly some renovations to make properties more attractive to Section 8 participants and other renters.
In conclusion, ZIP 50565 offers a niche opportunity for Section 8 investors, particularly those who are prepared to engage actively in property management and enhancement. While it may not be suitable for large-scale operations or hands-off strategies, it can serve as a viable option for smaller portfolios seeking stable, government-backed rental income.
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.