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 | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,230 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $216,001 | 0.45% | F |
| 3BR | $1,230 | $247,594 | 0.5% | F |
| 4BR | $1,590 | $288,115 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP code 50665 represents a small, residential neighborhood in Iowa. With a total population of 2,693, it is predominantly composed of homeowners, as only 16.5% of residents are renters. The median household income in this area is $75,521, which is relatively high compared to national averages, indicating a stable economic base. Median home values stand at $238,039, reflecting a modest but comfortable housing market.
The rental economics of ZIP 50665 are favorable for investors. According to the Fair Market Rent (FMR) set by HUD for fiscal year 2024, the FMR is $860. This compares to the actual market rent of $846, based on Census American Community Survey (ACS) data. The slight premium of the FMR over the market rent suggests that Section 8 vouchers can cover most market rents, making it easier for landlords to find tenants willing to pay the required amount.
Given these conditions, ZIP 50665 is suitable for both hands-off voucher operators and hands-on value-add buyers. For those looking for a low-maintenance investment, the stability of the neighborhood and the alignment between FMR and market rent mean that finding and retaining tenants should be straightforward. However, the modest number of renters also presents an opportunity for value-add strategies. Landlords could focus on improving property quality to command higher rents or convert some homes to rentals, capitalizing on the existing demand and the ability to leverage Section 8 vouchers.
In summary, ZIP 50665 offers a balanced environment where both passive and active investment styles can succeed. The neighborhood's economic stability and the favorable FMR-to-market rent ratio make it a viable option for Section 8 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.