Location: Floyd 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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $248,742 | 0.55% | F |
| 4BR | $1,380 | $329,297 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 50645 provides a clear picture of potential investment yields. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $860 per month, the annual rental income comes to $10,320. Against the median home value of $252,820, this implies a gross yield of approximately 4.1%. On the other hand, if we use the market rent figure of $924 per month, the annual rental income increases to $11,088, resulting in a gross yield of about 4.4%.
Given the 9.8% renter density in ZIP 50645, it's important to note that while the higher market rent scenario suggests a slightly better gross yield, the reality of securing tenants under Section 8 guidelines may be more aligned with the FMR scenario. The lack of specific Days on Market (DOM) data complicates a precise assessment of how quickly properties can be leased, but the lower gross yield based on FMR is a more conservative and likely accurate starting point for investment calculations.
To conclude, while the market rent scenario offers a gross yield of 4.4%, the more realistic expectation for Section 8 properties in ZIP 50645 is a gross yield of around 4.1%, based on the annualized FMR. This reflects the actual payment rates landlords can expect from the government program, adjusted for the local rental market conditions and tenant demand.
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.