Location: Fayette County, IA | Metro: Clayton 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $212,493 | 0.57% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50606 in the metro area for fiscal year 2026 is set at $920. This figure represents the maximum amount that a landlord can receive through the Section 8 program for a two-bedroom unit. It's important to note that this is the payment standard and not the actual rent you will charge your tenants. The FMR is used by the Department of Housing and Urban Development (HUD) to determine the rent limits for subsidized housing.
In comparison, the average rent in ZIP 50606, based on Census American Community Survey (ACS) data, is $901. This indicates that the FMR is slightly above the local average, which could be beneficial for landlords who are looking to cover operating costs and potentially make a profit.
The rental market in ZIP 50606 shows strong demand, with 25.1% of households being renters. This high percentage suggests a significant number of potential tenants who might benefit from the Section 8 program. Given the demand, landlords can expect a steady stream of applicants, though it's crucial to ensure that the property meets all HUD requirements to qualify for Section 8.
When considering the purchase of a property for Section 8 rentals, the median home value in ZIP 50606 is approximately $224,916. This figure provides a benchmark for the acquisition cost of a typical home in the area. However, the key to success lies in ensuring that the property is well-maintained and complies with HUD's housing quality standards (HQS).
Before proceeding with a Section 8 rental in ZIP 50606, it is imperative to verify that the property meets all the necessary HQS criteria. This includes safety, health, and structural standards. Failure to meet these requirements can result in the loss of Section 8 tenancy, impacting your financial stability and the overall success of your investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.