Location: Plymouth County, IA | Metro: Plymouth 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 | $820 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $282,831 | 0.39% | F |
| 3BR | $1,430 | $371,577 | 0.38% | F |
| 4BR | $1,510 | $422,600 | 0.36% | F |
U.S. Census Bureau data (2024)
An investor might question whether the Fair Market Rent (FMR) of $1,110 in ZIP 51024 (Hinton, IA) can sufficiently cover the mortgage on a home priced at $379,425. Current national mortgage rates have surged, but specific rates for Hinton, IA, must be considered. Assuming an average rate of around 4.5%, the monthly mortgage payment on a $379,425 home would be approximately $1,800, based on a 30-year fixed-rate mortgage. This means that the FMR would not fully cover the mortgage payment, leaving a significant gap.
A second objection could be the relatively low percentage of renters in Hinton, which stands at 16.0%. However, while this figure is indeed lower than the national average, it does not necessarily indicate a lack of demand. The rental market in Hinton is relatively small but stable, with 4 active rentals listed on Zillow. This suggests that there is a steady demand for rental properties, even if the percentage is not high.
The final concern might revolve around whether Section 8 vouchers will keep pace with the market rents, which are currently at $971. According to the FMR Lookup Tool for 2026, the FMR for ZIP 51024 is $1,110. While the voucher amount may not fully cover the market rent, it does provide a substantial portion of the required funds. Investors should monitor local trends through resources like HUD's Housing Choice Voucher Data Dashboard to ensure they stay informed about any changes in voucher amounts.
In conclusion, while the FMR of $1,110 will not fully cover the mortgage on a $379,425 home, the rental market in Hinton is stable despite the low renter percentage. Section 8 vouchers offer a significant portion of the market rent, making them a viable option for investors. However, it is important to continuously track local mortgage rates and voucher trends to make well-informed investment decisions.
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.