Location: Osceola County, IA | Metro: Dickinson 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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $185,810 | 0.61% | D |
| 3BR | $1,480 | $257,955 | 0.57% | F |
| 4BR | $1,490 | $331,360 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,180 for ZIP 51347 (Lake Park, IA) can sufficiently cover the mortgage on a property valued at $240,489. According to recent data, the median home value in this area is around $231,384, indicating that a mortgage on a $240,489 home is within the expected range for the market. However, it's crucial to note that the FMR is set for the metro area and might not directly reflect the specific conditions in ZIP 51347. For a more precise assessment, one would need to consider the local mortgage rates and the specific terms of the loan.
The investor may also doubt if there is sufficient demand among renters given the reported rental market share of 9.1%. While this percentage is relatively low, it suggests a stable but modest demand for rental properties. The median rent in the area is approximately $1,062 per month, which aligns closely with the FMR. Although the rental market share is low, the actual number of renters could still be substantial enough to support a small portfolio of rental units. It's important to monitor local economic trends and job growth, which can influence rental demand.
A final concern could be whether housing vouchers will keep pace with the market rents, currently averaging around $887. Vouchers are intended to help low-income families afford housing, but their adequacy depends on the local cost of living and the specifics of individual voucher programs. In ZIP 51347, the median rent is slightly above the average market rent, suggesting that some voucher holders might struggle to find suitable housing. However, the data does not provide a direct comparison between voucher amounts and local market rents. To accurately assess this issue, one would need to review the latest voucher guidelines and compare them to the current rent levels in the area.
To conclude, while the data provides insights into the challenges and opportunities in ZIP 51347, it is essential to conduct a thorough analysis that includes local mortgage rates, economic trends, and detailed voucher program information. This will give a clearer picture of the investment potential in this area.
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.