Location: Osceola County, IA | Metro: Clay 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 | $1,110 |
| 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 | $118,662 | 0.78% | D |
| 3BR | $1,110 | $186,569 | 0.59% | F |
| 4BR | $1,220 | $246,412 | 0.5% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 51346, which includes Hartley, Iowa, stands at $72,426. At first glance, this might seem sufficient for covering the $750 market rate for rent, according to Census ACS data. However, when considering the actual cost of living and other expenses, the ability to cover this amount becomes less clear. Landlords should be aware that the Federal Market Rent (FMR) standard for the metro area in fiscal year 2026 is set at $920, significantly higher than the current market rate.
This disparity between the median income and the FMR highlights an affordability gap for potential renters. The fact that only 17.3% of the 2,247 residents are renters suggests a competitive environment where landlords must carefully consider their rental strategies.
Affordability issues could drive some renters towards seeking housing assistance through vouchers, which would cover the higher FMR rate of $920. This means that landlords who accept vouchers will have access to a pool of tenants who can afford rents closer to the FMR, potentially increasing occupancy rates and stability in payments. On the other hand, those who rely solely on cash-paying tenants may face challenges in attracting enough renters willing to pay the $750 market rate without financial aid.
Takeaway for landlords: Accepting vouchers can provide a strategic advantage in ZIP 51346, ensuring a steady stream of tenants able to meet the higher FMR standards. While cash-paying tenants remain an option, the limited number of renters and the affordability gap indicate that voucher acceptance is crucial for sustained success in this market.
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.