Location: Cass County, IA | Metro: Adams 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 | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $224,138 | 0.57% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP code 50853 for a Section 8 investment must follow a structured decision-making process based on financial metrics and market conditions.
Step 1: Evaluate if the Fair Market Rent (FMR) of $920 can cover the debt service on a property priced at $167,602. To determine this, calculate the monthly mortgage payment, which includes principal, interest, taxes, and insurance. Assuming a 30-year fixed-rate mortgage at 4.5%, the monthly payment would be approximately $820. This figure does not include property taxes and insurance, which vary but typically add another $100-$200 per month. Thus, the FMR of $920 would likely cover the total debt service, making this a viable option for Section 8 participation.
Step 2: Compare the market rent of $584 (from Census ACS data) to the FMR. The market rent is significantly below the FMR, indicating that landlords could potentially charge closer to the FMR without pricing themselves out of the market. This suggests strong upside potential for rental income if the property qualifies for Section 8 vouchers.
Step 3: Assess the demand for rentals. In ZIP 50853, 14.7% of residents are renters. However, the data does not provide Days on Market (DOM), which is critical for understanding how quickly units are rented. Given the limited information, the demand appears moderate but insufficient to guarantee quick occupancy without further investigation into the local rental market's health.
If the FMR of $920 covers the debt service and market rent is below FMR, proceed to evaluate the demand. With moderate renter population and unknown DOM, the decision hinges on the local rental market dynamics. If the market shows signs of growth or stability, and competition is low, the answer is yes. Otherwise, it depends on additional factors such as the landlord's ability to manage risk and their long-term investment strategy.
In summary, for ZIP 50853, the financials align favorably for Section 8 investments, but the demand requires closer examination. Landlords should consider these points before deciding to invest.
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.