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 | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $138,475 | 0.68% | D |
| 3BR | $1,190 | $184,953 | 0.64% | D |
| 4BR | $1,310 | $212,910 | 0.62% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50635 in Iowa for the metro fiscal year 2026 is set at $920. This figure represents the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay to cover a tenant's portion of the rent under the Section 8 program. It is important to note that this is not the actual rent you would charge your tenants, but rather the benchmark HUD uses to determine the subsidy payments.
In comparison, the average rent in ZIP 50635 based on Census American Community Survey (ACS) data is $940. This indicates that the FMR is slightly below the market rate, which could mean that landlords participating in the Section 8 program might have to adjust their expectations regarding rental income. However, the difference is minimal, and the program still provides a reliable source of income.
The renter share in ZIP 50635 is 19.8%, meaning nearly one-fifth of the households are renters. This percentage suggests there is a consistent demand for rental properties in the area, making it a viable option for landlords looking to enter the Section 8 market. The median household income in the area is around $171,722, which is significantly higher than the typical income level of those who qualify for Section 8 assistance. This further underscores the need for affordable housing options and the potential demand for Section 8 rentals.
Before committing to a Section 8 rental property in ZIP 50635, it is crucial to verify that the property meets all the necessary inspection requirements. HUD has strict guidelines for property conditions, including health and safety standards, which must be met before approval can be granted. This ensures that the property is habitable and safe for tenants, and that you avoid any delays or issues with lease execution.
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.