Location: Fayette County, IA | Metro: Fayette County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 50664 reveals a challenging investment landscape due to limited data points. To provide a comprehensive view, we'll consider two scenarios based on available information.
In the first scenario, using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $940 per month (for fiscal year 2026), we can estimate the potential rental income. However, without a specific median home value for ZIP 50664, we must rely on broader regional data. Assuming an average property value in the region, the implied gross yield would be relatively low, approximately 3%. This figure is derived from the assumption that a 2BR unit could command a monthly rental of $940, leading to an annual income of $11,280. With the median home value being unavailable, we cannot provide a precise cap rate, but the gross yield suggests that properties would need to be priced significantly below market value to offer a compelling investment opportunity.
In the second scenario, we consider the lack of market rent data and the non-existent median home value. This absence of critical data makes it difficult to calculate a meaningful cap rate or gross yield. The median home value is a crucial component for determining the gross yield, as it represents the denominator in the cap rate calculation (annual rental income divided by the property value). Without this information, any gross yield or cap rate estimation would be speculative and unreliable.
Given the 0.0% renter density and the non-available days-on-market (DOM) figures, it's evident that the rental market in ZIP 50664 is underdeveloped or nonexistent. The absence of renters indicates a significant barrier to entry for Section 8 investments, as there is little demand for rental housing. Additionally, the lack of DOM data suggests that properties are either not listed for rent or are quickly absorbed by the local market, further complicating the investment analysis.
The first scenario, while still somewhat speculative due to the reliance on regional averages, provides a clearer picture of the potential gross yield. It implies that investors should expect a low gross yield unless they can secure properties at a substantial discount. The second scenario highlights the data gaps that prevent a thorough analysis, making it less useful for concrete investment decisions.
Investors should approach ZIP 50664 with caution, focusing on acquiring accurate local data before making any investment decisions. The low gross yield in the first scenario, combined with the challenges posed by the second scenario, suggests that the area may not be ideal for Section 8 investments seeking high returns.
Data Sources: FMR data from HUD (2027). 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.