Location: Fayette County, IA | Metro: Buchanan 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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $189,788 | 0.77% | D |
U.S. Census Bureau data (2024)
The ZIP code 50650 presents several challenges for landlords considering participation in the Section 8 program. Firstly, tenant turnover is a significant issue, with the market rent at $1,054 being notably higher than the Fair Market Rent (FMR) of $990 for FY 2026 in the metro area. This discrepancy can lead to frequent changes in occupancy as tenants struggle to meet the market rate, which is above the subsidized levels.
Vacancy exposure is another concern due to the lack of available data on days on market (DOM). High vacancy rates can be detrimental to cash flow, especially when relying on government subsidies that may not cover the full market rent. Additionally, the deferred maintenance exposure is substantial, given the typical home value of $181,547 and the median income of $57,500. Landlords must be prepared to invest in property upkeep without the immediate financial cushion that higher incomes might provide.
However, these risks are offset by the high concentration of renters in the area, with 26.6% of residents being renters. This high renter density usually translates into a robust demand for housing vouchers, making it easier to find eligible tenants who can afford the rent through Section 8 assistance. The combination of these factors suggests that while there are significant challenges, the potential for finding voucher holders is also high, which can stabilize occupancy and reduce the risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.