Location: Buchanan 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $180,815 | 0.53% | F |
| 3BR | $1,230 | $231,782 | 0.53% | F |
U.S. Census Bureau data (2024)
The Dunkerton, IA (50626) metro area presents a unique opportunity for Section 8 real-estate investors. According to HUD's Fair Market Rent (FMR) for FY 2024, the FMR for the zip code is set at $860. However, the market rent, as reported by the U.S. Census ACS, is significantly lower at $518.
This disparity indicates that voucher tenants in Dunkerton cashflow at FMR levels, meaning landlords can expect a positive cash flow when renting to tenants with Section 8 vouchers. Even with the lower market rent, the potential income from FMR-supported tenants is considerably higher.
The median home value in the Dunkerton area is approximately $233,157. Given the FMR and market rent figures, the rent-to-price ratio is quite favorable for investors looking to generate income from their properties. This ratio suggests that properties in Dunkerton can be rented out at a rate that is profitable relative to their purchase price.
Regarding the dynamics between renting and buying, the median Days on Market (DOM) and the percentage of price cuts are not directly available. However, the lack of significant price reductions and quick sales indicate a stable market with good demand for both rentals and purchases. This stability is beneficial for small-portfolio investors as it reduces the risk of prolonged vacancy periods or needing to lower asking prices.
The strongest angle for investors in Dunkerton is cashflow. With the FMR well above the market rent, landlords can secure steady income from tenants with Section 8 vouchers, making it an attractive option for those focused on generating rental income.
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.