Location: Shelby County, IA | Metro: Audubon 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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $156,103 | 0.6% | F |
| 3BR | $1,180 | $193,314 | 0.61% | D |
| 4BR | $1,310 | $203,318 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 51455 in Manning, IA might raise several objections regarding the feasibility of investing in the area. Let's address these concerns with the available data.
Will FMR $920 (metro FY 2026) cover the mortgage on a $186,609 home?
The Fair Market Rent (FMR) of $920 in FY 2026 is a key figure for determining if rental income will sufficiently cover mortgage payments. According to Zillow, the average home value in ZIP 51455 is $186,609, an increase of 8.1% over the past year. Using current mortgage rates and assuming a 20% down payment, the monthly mortgage payment for a home priced at $186,609 could be around $800 to $900, depending on the exact rate and terms. Therefore, the FMR does provide a reasonable margin to cover mortgage payments, especially when factoring in potential appreciation and tax benefits.
Is there enough renter demand at 18.0%?
The renter demand percentage of 18.0% indicates that a significant portion of the population in ZIP 51455 is interested in renting. This figure is relatively low compared to urban areas but still represents a viable market. Redfin reports that the median sale price in ZIP 51455 was $174K in March 2026, with homes selling after an average of 50 days on the market. While this suggests strong seller interest, it also implies a steady flow of transactions, which can be indicative of a stable rental market. However, the data does not provide detailed renter demand metrics, so further investigation may be necessary to confirm the robustness of the rental market.
Will vouchers keep pace with $700 market rents?
The market rent of $700 is slightly below the FMR of $920, indicating that voucher holders might have some flexibility in finding suitable rental properties. The U.S. Department of Housing and Urban Development (HUD) typically adjusts voucher amounts annually based on the FMR. Given the FMR is higher than the market rent, it is likely that vouchers will continue to keep pace with the local rental costs, although this depends on future adjustments and the specific policies of local housing authorities.
In conclusion, while ZIP 51455 presents certain challenges, such as lower renter demand compared to more densely populated areas, the data supports the notion that the Fair Market Rent can cover mortgage payments, and vouchers are likely to remain competitive with market rents. Further localized research may be beneficial to fully understand the rental market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.