Location: Waterloo-Cedar Falls, 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 | $213,520 | 0.44% | F |
| 3BR | $1,230 | $288,172 | 0.43% | F |
| 4BR | $1,590 | $323,843 | 0.49% | F |
| 5BR | $1,844 | $478,276 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 50624 in Iowa has a population of 1,855, with only 8.9% of residents being renters. This indicates that the area is predominantly homeowner-dominated rather than renter-heavy. Given the median household income of $96,713, the typical market rent of $711 represents approximately 7.8% of the local income. This is relatively low compared to the Federal Market Rent (FMR) of $860 for FY 2024, suggesting that rents in this area are below the federally determined fair market rate.
The lower percentage of renters in ZIP 50624 implies that there is less demand for rental properties and fewer Section 8 housing vouchers in circulation. For landlords, this means that the number of potential tenants using Section 8 vouchers will be limited, and they should focus on attracting those who can afford the market rent without assistance.
A landlord in ZIP 50624 should expect tenants who are likely to have stable employment and higher disposable incomes due to the relatively low cost of renting compared to the median income. The typical tenant would be someone who values the affordability of rent relative to their income, and who may prefer the quiet and potentially rural environment that often accompanies areas with fewer renters and a higher median income.
Given the homeowner-dominated nature of the ZIP code, landlords should also consider the possibility of facing competition from homeownership opportunities, which might attract individuals who are looking for long-term living solutions over short-term rentals. This could impact the turnover rate and the type of tenants seeking rental properties in the area.
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.