Location: Fayette County, IA | Metro: Bremer County, 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 | $690 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $146,363 | 0.64% | D |
| 3BR | $1,260 | $195,345 | 0.65% | D |
| 4BR | $1,300 | $273,334 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 50630, located in Fredericksburg, IA, within the Fayette County, IA metro area, does not work favorably for landlords. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $940, while the actual market rent, according to the Census ACS, is only $730. This discrepancy means that landlords would have to either accept lower rents or face potential vacancies if they aim to meet the FMR.
Acquisition of properties in this area is relatively affordable. The median home value stands at $202,699, which is below the national average and makes it easier for small-portfolio investors to enter the market. However, the lack of available data on days on market (DOM) and the percentage of homes requiring price cuts indicates a stable but possibly less dynamic real estate market. This could mean fewer opportunities for quick flips or rapid appreciation in property values.
Tenant demand is present but limited. With a total population of 1,372, and 21.2% of residents being renters, there are approximately 290 potential rental tenants. While this provides a steady base of demand, it also suggests that the market may be somewhat saturated, leading to increased competition among landlords and potentially affecting vacancy rates and rental income.
Verdict: ZIP 50630 offers an affordable entry point into the real estate market for small-portfolio investors, with median home values well below the national average. However, the mismatch between the FMR and actual market rent presents a challenge for landlords aiming to maximize their income. Tenant demand exists but is limited due to the small population size, which may lead to higher competition for rental units. Overall, the area is suitable for investors seeking stability over high returns, given the current economic conditions and demographic factors.
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.