Location: Fayette County, IA | Metro: Bremer County, 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 | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $142,262 | 0.77% | D |
| 3BR | $1,430 | $207,031 | 0.69% | D |
| 4BR | $1,440 | $257,195 | 0.56% | F |
| 5BR | $1,670 | $360,126 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50674, encompassing Sumner, IA, and part of the Fayette County, IA metro area, reveals several key points for potential real estate investments.
First, let's address whether the rent math works. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $860. However, the Census American Community Survey (ACS) indicates that the market rent stands at $944. This suggests that landlords can expect to charge above the FMR, potentially increasing their rental income by $84 per unit each month.
Regarding acquisition affordability, the median home value in ZIP 50674 is $203,221. Given the lack of specific data on days on market (DOM) and the percentage of homes needing price cuts, it's challenging to provide a definitive assessment on how competitive the market is for acquiring properties. Nonetheless, the median home value offers an insight into the general affordability of purchasing real estate in the area.
Is there tenant demand? With a population of 3,446, the renter share is 17.3%, indicating a steady but modest demand for rental properties. This means approximately 595 residents are renters, which could be a reliable tenant pool for landlords.
Verdict: The rent math in ZIP 50674 works favorably for landlords, with the potential to earn above the FMR. Acquisition costs are reasonable, though the absence of DOM and price-cut data limits a full understanding of the competition. Tenant demand is present, albeit not overwhelming, with a significant number of residents looking for rental options. For small-portfolio investors, this area presents a balanced opportunity with clear rental pricing advantages and a manageable tenant base.
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.