Location: Floyd County, IA | Metro: Butler 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 | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,130 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $176,942 | 0.54% | F |
| 3BR | $1,130 | $203,425 | 0.56% | F |
U.S. Census Bureau data (2024)
In ZIP 50619, which encompasses Clarksville, IA, several concerns arise for potential investors looking into the real estate market, particularly those interested in the Section 8 housing choice voucher program.
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,000 for a metro area in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $183,619. According to recent data, the median home value in the area is approximately $180,124, which aligns closely with the $183,619 figure. While the FMR of $1,000 does provide a cushion over the $747 market rent, it's essential to note that mortgage payments can vary significantly based on interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage at a conservative rate of 4%, the monthly payment on a $183,619 home would be roughly $890. Thus, the $1,000 FMR would indeed cover the mortgage, leaving room for property taxes, insurance, and maintenance.
The second objection relates to the perceived low renter demand at 18.4%. However, the market intelligence suggests that properties in ZIP 50619 move within an average of 38 days, indicating a relatively stable turnover rate. The 18.4% rental occupancy rate reflects a modest but not negligible share of the housing market. It's important to consider that while this percentage is lower than some urban centers, it still represents a significant portion of the housing needs in Clarksville, especially given the town's size and demographic makeup.
Lastly, an investor might worry if voucher utilization will keep pace with market rents of $747. The data indicates that the FMR of $1,000 is designed to ensure that voucher holders can access a broad range of housing options. Although the exact amount of voucher utilization isn't specified, the FMR is set higher than the current market rent, suggesting that it aims to cover a reasonable portion of the rent. This implies that landlords participating in the voucher program should expect to receive a substantial portion of their rent covered by the vouchers, though they may need to accept a slightly lower net rent than the market rate.
In summary, while ZIP 50619 presents challenges such as modest renter demand and the need to balance market rents with voucher amounts, the data supports the feasibility of investing in this area through the Section 8 program. The FMR provides a sufficient buffer to cover mortgage payments, and the voucher system aims to keep pace with market rents, ensuring a steady income stream for landlords.
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.