Location: Mitchell County, IA | Metro: Howard 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 | $690 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $238,201 | 0.54% | F |
| 4BR | $1,510 | $259,300 | 0.58% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 50628 hinges on its financial metrics, particularly the comparison between the Fair Market Rent (FMR) and the actual market rent, along with the stability factors such as the percentage of renters, days on market (DOM), and median household income.
Yield Analysis: The FMR for the metro area in fiscal year 2026 is set at $920, while the market rent in ZIP 50628 is lower at $672. This indicates a potential upside for landlords who can leverage the higher FMR to increase rental income. However, the discrepancy also suggests that the market may not fully support the higher rents immediately, making it a moderate yield opportunity. The median home value of $214,404 provides a baseline for investment costs, but the key figure here is the $672 market rent, which is below the FMR but still offers a decent return relative to the home value.
Stability Analysis: With 26.4% of residents being renters, the stability of the market is somewhat limited. A higher percentage of homeowners generally leads to greater stability because homeowners are less likely to vacate properties quickly compared to renters. Additionally, the median household income of $68,750 supports the ability of residents to pay the market rent, although it does not directly correlate with the stability of rental income. The lack of data on days on market (DOM) means we cannot assess how quickly properties are rented out or vacated, which is a critical factor for stability.
Based on these figures, ZIP 50628 is best classified as a moderate-stability, moderate-yield market. It is not a high-yield/low-stability flip-style market due to the relatively low market rent compared to the FMR. Instead, it offers a balanced approach where landlords can expect steady cash flow without the volatility associated with areas where rents fluctuate widely or where there is a high turnover rate among tenants. The income levels suggest that tenants can afford the rent, but the lower percentage of renters and the unknown DOM figure indicate some level of risk regarding the speed and consistency of property occupancy.
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.