Location: Waterloo-Cedar Falls, 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 | $740 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $245,566 | 0.55% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50667 in fiscal year 2024 is set at $930. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 Housing Choice Voucher program. It's important to note that this is not the actual rent you would receive; rather, it is the benchmark used by the government to determine the rent subsidy for eligible tenants.
In comparison, the average market rent in ZIP 50667, according to recent Census American Community Survey (ACS) data, is $1,125. This means that while the FMR is lower, you still have the opportunity to attract tenants who might otherwise be priced out of the market due to higher rents. The FMR acts as a cap, ensuring affordability for low-income families.
The renter share in this area is approximately 6.5%, indicating that there is a steady demand for rental properties among those who qualify for Section 8 vouchers. Given the population size and the percentage of renters, you can expect a consistent pool of potential tenants. To put this into perspective, if the total population of ZIP 50667 is around 36,650 (as of 2020), then roughly 2,382 residents are looking for rental housing, which aligns well with the number of Section 8 voucher holders.
When considering purchasing a property for a Section 8 rental in this ZIP code, the median home value is $238,229. This price point is relatively accessible for new investors, especially when weighed against the ongoing demand for affordable housing. However, it's crucial to understand that the initial investment should be balanced with the long-term financial benefits of stable, government-backed rental income.
Before making your decision, verify that the property meets all the necessary requirements for Section 8 participation. This includes passing a thorough inspection to ensure it complies with housing quality standards (HQS). These standards cover safety, health, and structural conditions, so a pre-inspection can save you time and money in the long run.
In summary, the FMR of $930 provides a clear guideline for setting your rent under the Section 8 program, while the local market rent of $1,125 offers insight into the broader rental landscape. With a 6.5% renter share and an acquisition cost of about $238,229, ZIP 50667 presents a viable opportunity for landlords and small-portfolio investors interested in entering the Section 8 market.
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.