Location: Jackson County, MN | 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 |
|---|---|---|---|---|
| 1BR | $860 | $168,562 | 0.51% | F |
| 2BR | $1,130 | $302,442 | 0.37% | F |
| 3BR | $1,480 | $409,657 | 0.36% | F |
| 4BR | $1,490 | $559,374 | 0.27% | F |
| 5BR | $1,728 | $801,423 | 0.22% | F |
U.S. Census Bureau data (2024)
The ZIP code 51360, located in Spirit Lake, Iowa, presents a unique combination of yield and stability that is worth exploring for landlords and small-portfolio investors. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,120, while the market rent stands at $935. This indicates a moderate gap between what the government deems as fair market rent and the actual market rates, suggesting a decent opportunity for rental income.
The median home value in the area is $393,776, which is a significant figure when considering investment properties. This value suggests that the area is not cheap, but it also implies a certain level of property quality and potential for appreciation. However, the average income in the area is $75,882, which is relatively low compared to the home values. This could indicate a challenge in attracting tenants who can afford higher rents, thus affecting the stability of rental income.
Regarding stability, the area has a renter occupancy rate of 24.7%, which is lower than many metropolitan areas but still a substantial portion of the housing market. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties might be rented out, which is a key indicator of market stability. However, the lower income levels and the relatively high median home value suggest that there might be some volatility in the rental market.
In conclusion, ZIP 51360 is best classified as a medium-yield/medium-stability market. While the potential rental income is moderately attractive due to the FMR being higher than the market rent, the lower tenant affordability and renter occupancy rates introduce an element of risk. For investors looking to balance between yield and stability, this area offers a middle ground, with the potential for good returns if managed well, but requires careful consideration of the local economic conditions and tenant demographics.
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.