Location: Taylor County, IA | Metro: Ringgold 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $142,732 | 0.83% | C |
U.S. Census Bureau data (2024)
The ZIP code 50840 is a modest-sized community with a population of 552 residents. Within this area, 30.4% of the population are renters, indicating that while there is a significant number of tenants, it is not dominated by rental properties. The median household income in this ZIP is $63,125, which provides a baseline for understanding the financial capabilities of potential tenants.
The market rent for this area is set at $679, which consumes approximately 10.8% of the median household income when calculated as a monthly expense. This percentage suggests that the average rent is relatively affordable compared to the income levels of the residents. However, it's important to note that the Fair Market Rent (FMR) for the area, which is used as a benchmark for Section 8 voucher amounts, stands at $920 for the fiscal year 2026. This indicates that landlords participating in the Section 8 program can potentially receive higher rent payments through vouchers than the current market rate suggests.
The difference between the market rent and the FMR highlights an opportunity for landlords who are willing to accept Section 8 vouchers. With vouchers covering up to $920, landlords can secure a more stable income stream than the typical market rent of $679 would provide. This makes the ZIP code 50840 particularly attractive for those looking to enter or remain in the rental market, especially with the support of government subsidies.
The type of tenant profile landlords should anticipate in this ZIP includes individuals and families who rely on Section 8 vouchers due to their lower income levels. These tenants will likely be seeking affordable housing options and may have specific requirements or preferences related to their financial situation and the terms of their vouchers. Landlords should be prepared to work within the guidelines set by the Section 8 program, ensuring that their units meet the necessary standards and that they can manage the administrative aspects of receiving subsidized rent payments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.