Location: Greene County, IA | Metro: Calhoun 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 | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $103,846 | 0.91% | C |
| 3BR | $1,160 | $165,852 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 51449, which encompasses Lake City, IA, and parts of Calhoun and Greene Counties, presents a unique investment opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the metro area is set at $930 for fiscal year 2026. In comparison, the Census ACS reports an average market rent of $763, indicating that voucher tenants can indeed cashflow at the FMR rate.
The difference between the HUD FMR and the market rent suggests that landlords can expect a positive cashflow when renting to voucher holders. This is particularly true for properties that are priced closer to the FMR rather than at the lower end of the market. Given the median home value in the area is $150,243, the rent-to-price ratio is favorable for rental investments. This ratio implies that the rental income generated from properties in this ZIP code can provide a solid return on investment compared to the purchase price.
However, it's important to note that the median days on market (DOM) and the percentage of price cuts are not available for this area. These metrics would typically help assess the speed at which properties sell and the frequency of price adjustments, which are crucial for understanding the rent-versus-buy dynamics. Without these figures, we must rely on the existing data to make informed decisions.
In summary, the strong cashflow potential from voucher tenants at the HUD FMR rate makes this ZIP code an attractive investment for those looking to secure steady rental income. The favorable rent-to-price ratio further supports the case for rental investment over home ownership, given the current data. The strongest investor angle in ZIP 51449 is cashflow, due to the discrepancy between market rents and the HUD FMR.
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.