Location: Tama County, IA | Metro: Marshall 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 | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $129,729 | 0.72% | D |
| 3BR | $1,180 | $173,893 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50632, which includes Garwin, IA, and the broader Tama County metro area, reveals key insights for landlords and small-portfolio investors. The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area is set at $920 for fiscal year 2026, while the current market rent, according to Census ACS data, stands at $702. This discrepancy indicates that the rent math does not currently favor landlords, as they would need to align their rental prices closer to the market rate to attract tenants.
Moving on to the affordability of acquisitions, the median home value in the area is $152,279. Given the lack of specific data on days on market (DOM) and the percentage of homes needing price cuts, it's challenging to provide a precise assessment. However, the median home value suggests that property acquisition is relatively affordable compared to many other regions across the United States. This makes ZIP 50632 an attractive option for investors looking to enter the market without a significant capital outlay.
The third question concerns tenant demand. With a total population of 1,201 and a renter share of 13.6%, the pool of potential tenants is limited. This low renter share indicates that there might not be a strong tenant demand in the area, which could pose challenges for landlords in terms of occupancy rates and competition for tenants.
In conclusion, ZIP 50632 presents a mixed scenario for investment. While property acquisition appears affordable with a median home value of $152,279, the current market rent of $702 falls below the FMR of $920, suggesting that landlords must adjust their pricing expectations. Furthermore, the limited population and low renter share indicate a potentially weak tenant demand. These factors collectively suggest that investing in this ZIP code requires careful consideration of market conditions and a willingness to price competitively to ensure steady 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.