Location: Buchanan County, IA | Metro: Waterloo-Cedar Falls, 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 | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $202,214 | 0.49% | F |
| 3BR | $1,370 | $274,375 | 0.5% | F |
| 4BR | $1,640 | $327,544 | 0.5% | F |
| 5BR | $1,902 | $412,370 | 0.46% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 50648, located in Jesup, IA, and part of the Buchanan County, IA metro area, is favorable but tight. The Fair Market Rent (FMR) set at $890 for fiscal year 2024 is slightly below the market rent of $921 as reported by the Census ACS. This indicates that landlords can charge slightly above the FMR to remain competitive.
Acquisition costs in the area are moderate, with a median home value of $262,822. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that the local housing market may not be as active or fluid as in other areas. Landlords should proceed with caution and ensure they have a thorough understanding of the local real estate dynamics before making an investment.
Tenant demand is relatively low in ZIP 50648, with a total population of 4,269 and only 13.4% of residents being renters. This means that the pool of potential tenants is limited, which could pose challenges in maintaining occupancy rates. Landlords must be prepared to offer competitive terms and possibly incur higher vacancy rates compared to more densely populated rental markets.
In summary, while the rent math in ZIP 50648 works, it offers slim margins over the FMR. Acquisition costs are reasonable, yet the absence of detailed market activity data introduces uncertainty. Tenant demand is notably low, indicating a smaller pool of potential renters. For small-portfolio investors, this area presents opportunities but also requires careful consideration due to the limited tenant base and uncertain market conditions.
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.