Location: Hardin County, IA | Metro: Waterloo-Cedar Falls, IA HUD Metro FMR Area
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 | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $111,540 | 0.85% | C |
| 3BR | $1,230 | $156,863 | 0.78% | D |
| 4BR | $1,590 | $169,982 | 0.94% | C |
U.S. Census Bureau data (2024)
The ZIP code 50601, located in Ackley, Iowa, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. The median income for households in this area stands at $66,250 according to recent Census ACS data. Considering the market rate for rent is $827, it becomes evident that the average household may struggle to afford housing without financial assistance.
When comparing the market rate to the federal payment standard for Housing Choice Vouchers, which is set at $860 for ZIP code 50601 in fiscal year 2024, we see that voucher holders can afford slightly higher rents than the market average. This suggests that landlords who accept vouchers could potentially charge closer to the voucher limit, thus maximizing their rental income.
Ackley has a relatively low percentage of renters, with only 18.4% of the 2,299 residents living in rented properties. Despite this, the affordability gap between median income and market rent indicates that there is a significant portion of the population that cannot comfortably pay the going rate. This creates a competitive environment for landlords, as they must balance rent prices with the ability of potential tenants to pay.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While cash-paying tenants might offer more flexibility, the reality of the local economy means that many households will require assistance through vouchers to afford housing. Accepting vouchers allows landlords to tap into a reliable source of rental income, backed by the government, and ensures a steady stream of tenants despite the challenging economic landscape.
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.