Location: Webster County, IA | Metro: Calhoun County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The ZIP code 50586 presents an interesting balance between yield and stability, making it a viable option for both high-yield seekers and those looking for steady cash flow. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920, which is notably higher than the market rent of $831. This suggests a potential for higher rental yields when compared to other areas where FMR and market rents are closer. However, the absence of home value data indicates a lack of historical context for property appreciation, which could be a concern for some investors.
On the stability front, the ZIP code shows a relatively low percentage of renters at 17.1%. While this figure might seem concerning at first glance, it's important to consider that it also means there's less competition among rental properties, potentially allowing landlords to maintain higher occupancy rates without significant price concessions. Additionally, the median household income in the area stands at $55,375, which can support rental prices and provide a buffer against default risks.
The lack of data on days on market (DOM) makes it challenging to assess the speed of property turnover, but given the higher FMR compared to the market rent, it's likely that properties will turn faster in this area, appealing to investors interested in quick flips or short-term rentals. However, the lower renter percentage suggests a need for strategic property management to ensure consistent cash flow.
In conclusion, ZIP 50586 leans towards being a high-yield/medium-stability market. The significant gap between FMR and market rent indicates strong potential for rental income, while the moderate renter percentage and median income levels suggest a reasonable degree of stability. Investors should weigh these factors carefully, considering their investment goals and risk tolerance.
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.