Location: Floyd County, IA | Metro: Chickasaw 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 | $1,160 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $710 | $61,828 | 1.15% | B |
| 2BR | $930 | $101,901 | 0.91% | C |
| 3BR | $1,160 | $151,595 | 0.77% | D |
| 4BR | $1,360 | $214,785 | 0.63% | D |
| 5BR | $1,578 | $308,216 | 0.51% | F |
U.S. Census Bureau data (2024)
The market in ZIP 50616, encompassing Charles City, Iowa, presents a dynamic scenario where the Federal Market Rent (FMR) at $920 for the fiscal year 2026 exceeds the current market rent of $734 based on Census American Community Survey data. This suggests that while rents are currently lower, there's an upward trajectory implied by the higher FMR, which is indicative of government-supported rental rates often tied to housing assistance programs like Section 8.
A price-cut share of just 0.1% indicates that very few properties are being discounted, which is a strong signal that the market is robust and sellers can maintain their asking prices without significant concessions. The median home value stands at $142,590, offering affordability to both buyers and renters alike. However, the lack of data on days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. Nonetheless, the low price-cut share suggests that demand is steady or slightly exceeding supply, keeping the market balanced and potentially even favoring sellers.
The 27.3% renter share highlights a substantial portion of the population preferring to rent rather than buy. This percentage is telling of the long-term housing pressure in the area. A higher renter share can indicate several factors: it might suggest that some residents are waiting for better purchasing opportunities, or it could reflect a demographic trend where renting is preferred over homeownership. In either case, it points towards a persistent demand for rental properties, making it a viable market for landlords and small-portfolio investors.
Investors should take note of these dynamics. The gap between the FMR and current market rent suggests potential growth for rental income, especially if more government-assisted tenants enter the market. The low price-cut share supports the idea that the market is resilient, with little need for property discounts, indicating healthy buyer interest. Given the 27.3% renter share, there is a sustained base of tenants, which can provide stability to rental investments in the region.
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.