Location: Plymouth County, IA | Metro: Cherokee 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 | $770 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $139,047 | 0.74% | D |
| 3BR | $1,440 | $201,566 | 0.71% | D |
| 4BR | $1,590 | $225,186 | 0.71% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 51035, located in Marcus, Iowa, stands at $79,338 according to the latest Census American Community Survey (ACS) data. When considering the market rate for rent, which is set at $642, it becomes evident that a significant portion of the household income is not directly tied to housing expenses. However, comparing the market rate to the federal payment standard for Section 8 vouchers reveals a substantial disparity.
The voucher payment standard for the metro area in fiscal year 2026 is pegged at $1,140, far exceeding the local market rate. This means that tenants with Section 8 vouchers have the potential to cover a larger share of their rental costs, making them attractive to landlords who might otherwise struggle to find tenants willing to pay higher rents.
With only 17.2% of the population renting and a total population of 1,627, the competition among landlords is relatively low. This suggests that there is ample opportunity to secure tenants, whether they are cash-paying or on vouchers. However, the low percentage of renters indicates that the demand for rental properties is limited, which could impact vacancy rates and the overall rental market dynamics.
The affordability gap, where the market rate is significantly lower than the voucher payment standard, implies that landlords can potentially benefit from accepting Section 8 vouchers. They would receive a higher rent payment compared to the local market rate, thus increasing profitability per unit. For landlords and small-portfolio investors considering their strategy, the takeaway is clear: accepting Section 8 vouchers can be a lucrative approach given the current financial landscape in Marcus, IA.
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.