Location: Webster County, IA | Metro: Webster County, IA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $92,589 | 1% | B |
| 3BR | $1,190 | $162,039 | 0.73% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50569, Otho, Iowa, stands at $920 for the fiscal year 2026. This figure represents the payment standard set by the U.S. Department of Housing and Urban Development (HUD) for Section 8 rentals. It's important to note that this is not the amount you will receive as rent but rather the maximum amount HUD will pay on behalf of eligible tenants.
In contrast, the average rent in Otho, based on Census American Community Survey data, is $665. This lower market rate suggests that the $920 FMR could potentially offer a higher income stream compared to the local rental market. However, it also implies that the Section 8 program is designed to subsidize rents that exceed the typical rates in the area.
Otho has a 22.3% share of renters among its population. This means that nearly one in every five residents are likely to be looking for rental housing. For landlords and small-portfolio investors, this indicates a steady demand for rental properties, particularly those participating in the Section 8 program where affordability is a key concern for many tenants.
If you're considering acquiring a property in Otho to use as a Section 8 rental, the median home value is around $126,943. This can be a good starting point for understanding the potential acquisition costs. Keep in mind that the actual purchase price can vary based on the condition and location of the property.
Before you commit to a Section 8 rental in Otho, ensure that the property meets all local and federal standards for habitability and safety. This is crucial because properties must pass regular inspections to remain eligible for the program. By verifying compliance with these standards, you can avoid future complications and ensure a smooth operation of your rental business.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.