Location: Bremer 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 | $660 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $224,392 | 0.42% | F |
| 3BR | $1,230 | $271,442 | 0.45% | F |
| 4BR | $1,590 | $347,579 | 0.46% | F |
| 5BR | $1,844 | $488,921 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 50622 represents a quiet suburban neighborhood located in Denver, Iowa. With a total population of 3,549, it is a small community where only 13.2% of residents are renters, indicating a predominantly owner-occupied area. The median household income in this region stands at $95,089, which is above the national average, suggesting a relatively affluent environment. The median home value is $305,304, reflecting the quality and desirability of the housing stock.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 50622 for fiscal year 2024 is set at $880. This figure closely aligns with the market rent reported by the Census Bureau's American Community Survey (ACS), which is $875. For Section 8 investors, this means the rental subsidies will cover nearly the full market rate, leaving little to no gap between the subsidized amount and what tenants can afford to pay out-of-pocket.
Given these economic conditions, ZIP 50622 is well-suited for a hands-off voucher operator. The high median income and low percentage of renters suggest a stable tenant pool with a lower likelihood of subsidy dependency. Additionally, the alignment between the FMR and market rent reduces the risk of financial strain on landlords who might be operating on tight margins.
However, for a hands-on value-add buyer looking to renovate and increase property values, this area presents a more challenging scenario. The already high median home value and modest rental market indicate limited upside potential for significant capital improvements. In such a context, a hands-on approach would require careful consideration of renovation costs versus potential increases in rental rates or property values.
In summary, for hands-off operators, ZIP 50622 offers a secure investment opportunity with minimal financial risk. For those seeking to actively manage and enhance their properties, the returns may be less pronounced due to the mature nature of the local real estate market.
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.