Location: Waterloo-Cedar Falls, IA | Metro: Waterloo-Cedar Falls, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 50623 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for FY 2024 is set at $950 per month. To derive the annualized income, multiply this figure by 12, resulting in an annual rental income of $11,400.
The median home value in ZIP 50623 is currently unavailable, which makes it challenging to provide a direct comparison between the Section 8 rent and the market rent. However, we can still assess the potential gross yield based on the available FMR data.
In the scenario where the median home value is known, the gross yield would be calculated by dividing the annual rental income by the property's value. For instance, if the median home value were $200,000, the gross yield would be 5.7% ($11,400 / $200,000 * 100). This figure serves as a baseline for evaluating investment opportunities.
Given the 0.0% renter density in ZIP 50623, it is evident that there is a low demand for rental properties in this area. The days on market (DOM) figure is also unavailable, which typically indicates either a very quick or slow market. This lack of data points towards a potentially less favorable environment for rental investments.
The more realistic scenario considers the limited availability of market rent data and the low renter density. In such a case, the gross yield derived from the Section 8 FMR is the most reliable metric. Landlords should focus on the guaranteed income stream provided by the Section 8 program, rather than speculative market rents.
To summarize, the annualized Section 8 rent for a two-bedroom apartment in ZIP 50623 is $11,400. Without the median home value, it is difficult to calculate a precise gross yield. However, assuming a hypothetical median home value of $200,000, the gross yield would be 5.7%. Given the low renter density and the unavailability of market rent data, relying on the FMR for Section 8 is the most prudent approach for investment analysis.
Data Sources: FMR data from HUD (2027). 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.