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 | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $800 | $85,265 | 0.94% | C |
| 2BR | $1,050 | $124,286 | 0.84% | C |
| 3BR | $1,340 | $178,095 | 0.75% | D |
| 4BR | $1,760 | $237,603 | 0.74% | D |
U.S. Census Bureau data (2024)
ZIP 50707, located in Evansdale, IA, within the Waterloo-Cedar Falls, IA HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area is set at $910 for fiscal year 2024, which is notably lower than the market rent of $951. This means that landlords can secure a steady stream of rental income through the Section 8 program, knowing that the government will cover the majority of their expenses without significant risk of default.
The median home value in ZIP 50707 is $153,481. Despite this, the primary focus for Section 8 landlords should be on the stability of rental income rather than potential property appreciation. The low price-cut share of 0.2% and an N/A-day DOM (Days on Market) indicate that while properties might not depreciate significantly, they also won't likely see substantial capital gains in the near future. Thus, ZIP 50707 is best positioned as a cash-flow anchor, ensuring consistent returns through guaranteed rental payments.
The median income in the area is $63,441, with a renter share of 30.8%. These figures suggest a stable tenant population that benefits from government assistance programs, making it a reliable source of rental income. Landlords should expect a narrow spread of $41 between the HUD FMR and the market rent, which translates into a modest profit margin but ensures steady cash flow.
In summary, ZIP 50707 is ideal for those seeking a stable, predictable component in their investment portfolio. It offers a solid foundation for generating consistent rental income, particularly valuable for small-portfolio investors who need reliable returns. While it may not offer the highest potential for property appreciation, the security and predictability it provides make it a strong choice for a Section 8-focused investment strategy.
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.