Location: Shelby County, IA | Metro: Shelby 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 | $840 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,210 | $180,514 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 51446 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, with the market rent at $705 being notably lower than the Fair Market Rent (FMR) of $920 for fiscal year 2026 in the metro area. This discrepancy suggests that tenants may prefer higher-rent properties, leading to frequent turnover and the associated costs of re-leasing units.
Vacancy exposure is another issue, as the number of days on market (DOM) is currently unavailable. However, this gap in information highlights a potential lack of data reliability and could indicate periods of high vacancy rates, which would be detrimental to rental income stability.
The deferred maintenance exposure is substantial given the typical home value of $152,020 and the median income of $62,750. Landlords should expect to invest in property upkeep, as the income level may not support the cost of maintaining homes at a standard that meets Section 8 requirements without additional financial strain.
On the positive side, the high renter share of 12.6% indicates a robust demand for rental housing, including Section 8 vouchers. High renter density typically translates into a steady stream of voucher holders looking for suitable accommodation, which can help mitigate some of the risks posed by tenant turnover and vacancy exposure.
In conclusion, despite the potential for a steady stream of voucher holders, the combination of low market rents relative to FMR, unknown vacancy trends, and the need for significant maintenance investments places the risk for a first-time Section 8 landlord in ZIP 51446 at moderate.
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.