Location: Shelby County, IA | Metro: Crawford County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 51527 in Shelby County, Iowa, reveals a favorable environment for cash flow. The HUD Fair Market Rent (FMR) for the Shelby County metro area is set at $920 for fiscal year 2026. In contrast, the market rent based on Census ACS data is $689, indicating that voucher tenants can cover rents at a substantial margin above the market rate.
To derive the rent-to-price ratio, we use the median home value of $206,635. With a monthly rent of $689, the annual rent is $8,268. This results in an annual rent-to-price ratio of approximately 4%. For a property rented at the HUD FMR of $920 per month, the annual rent would be $11,040, leading to an annual rent-to-price ratio of about 5.3%, which is quite competitive and suggests strong cash flow potential for investors.
The dynamics between rental and buying markets are critical for understanding the overall investment climate. However, with the median Days on Market (DOM) being N/A and the percentage of price cuts also noted as N/A, these metrics are not available to provide additional insights into the local real estate market. Despite this lack of detail, the significant gap between HUD FMR and market rent strongly supports the viability of Section 8 investments in this area.
In summary, the strongest investor angle in ZIP 51527 is cash flow. The HUD FMR far exceeds the market rent, ensuring that voucher tenants can easily cover the costs associated with maintaining properties, leaving ample room for profit even after accounting for typical expenses such as maintenance and vacancy rates.
Data Sources: FMR data from HUD (2027). 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.