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 | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $81,088 | 1.16% | B |
| 3BR | $1,240 | $134,521 | 0.92% | C |
| 4BR | $1,330 | $158,323 | 0.84% | C |
| 5BR | $1,543 | $216,197 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 50662, encompassing Oelwein, IA, and the Fayette County area, presents a unique opportunity for investors. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $940. In contrast, the market rent based on Census ACS data stands at $857, indicating that voucher tenants can generally cashflow at the FMR rate, though with a slight margin. This suggests that landlords will see positive cashflow without the need for premium units, making it an attractive option for those seeking stable returns.
To further analyze the investment potential, consider the median home value in the area, which is $110,362. This figure allows us to derive a rent-to-price ratio of approximately 0.77%, calculated by dividing the annual market rent ($857 * 12) by the median home value. A lower rent-to-price ratio typically implies that rental income is less significant relative to property values, but in this case, it indicates a balance where properties are affordable enough for renters while still offering decent rental yields.
The dynamics between renting and buying in this market are also noteworthy. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it's evident that the local real estate market favors sellers, suggesting that once purchased, properties are likely to be occupied quickly and without significant negotiation. However, these metrics do not directly impact the cashflow potential for Section 8 investors, as the primary focus remains on the rental income versus the HUD FMR.
In summary, the strongest angle for Section 8 investors in ZIP 50662 is cashflow. Given the favorable FMR rates compared to the actual market rent, combined with the reasonable rent-to-price ratio, investors can expect steady and predictable cashflow from their properties. This makes the area particularly appealing for those looking to build a consistent income stream through rental investments.
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.