Location: Union County, IA | Metro: Union County, IA
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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $151,277 | 0.61% | D |
| 3BR | $1,210 | $214,585 | 0.56% | F |
U.S. Census Bureau data (2024)
The Union County, IA metro area, specifically ZIP code 50830, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the region stands at $920 per month for fiscal year 2026, significantly higher than the current market rent of $656 based on Census ACS data. This discrepancy means that voucher tenants can cashflow at the HUD FMR, providing landlords with a substantial buffer over typical market rates.
To understand the investment potential further, consider the median home value in ZIP 50830, which is $197,650. Using this figure and the market rent of $656, we derive a rent-to-price ratio of approximately 0.38%, indicating that rental income represents a small percentage of the property's total value. However, this ratio is less critical when analyzing cashflow from Section 8 vouchers, given the higher guaranteed rent payments.
The dynamics between renting and buying in this market do not significantly impact the decision-making process for investors, as the median Days on Market (DOM) and the percentage of price cuts are not applicable here. These metrics typically reflect challenges in selling properties rather than renting them, and since Section 8 investments focus on long-term rental income, such data points are irrelevant.
In conclusion, the strongest angle for investors in ZIP 50830 is cashflow. With the HUD FMR well above the current market rent, landlords can expect consistent and reliable income from voucher tenants without the need for premium units. This makes Section 8 investing a highly attractive option for those seeking stable and predictable returns.
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.