Location: Butler 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 | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $169,610 | 0.61% | D |
| 3BR | $1,240 | $286,804 | 0.43% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 50660, located in New Hartford, Iowa, reveals a balanced opportunity between cash flow and property stability. The HUD Fair Market Rent (FMR) for FY 2024 stands at $860, while the Census ACS reported market rent averages at $954. This indicates that voucher tenants will generally cash flow at the FMR rate, though landlords might experience marginal profitability due to the $94 shortfall per unit.
To further contextualize these figures, consider the median home value in the area, which is $229,656. This yields a rent-to-price ratio of approximately 0.4%, calculated by dividing the annualized FMR ($10,320) by the median home value. This low ratio suggests that rental income alone may not fully justify the purchase price of a property, but it does offer a stable tenant base with guaranteed income through the voucher program.
In terms of days on market (DOM) and price-cutting percentages, the data is currently not available. However, the rent-to-price ratio implies that the buy vs. rent dynamic favors purchasing over renting, given the relatively high cost of homeownership compared to rental income. For landlords, this means that while cash flow might be modest, the stability of having a government-backed tenant could outweigh the need for significant profit margins.
The strongest investor angle in this market is stability, as the consistent income from the Section 8 program provides a reliable stream of rental payments without the volatility often seen in purely market-rate rentals.
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.