Location: Fremont County, IA | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
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 | $950 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $160,865 | 0.74% | D |
| 3BR | $1,580 | $281,836 | 0.56% | F |
| 4BR | $1,780 | $473,628 | 0.38% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 51561, located in Pacific Junction, IA, reveals a balanced scenario between the Federal Housing Administration's Fair Market Rent (FMR) and actual market conditions. The HUD FMR for ZIP 51561 is set at $1,100 for fiscal year 2024, while the Census American Community Survey (ACS) reports the market rent at $1,103. This indicates that properties renting at or slightly above the FMR can expect to cashflow marginally, with minimal adjustments needed to maintain profitability.
To further assess the investment potential, consider the median home value in the area, which stands at $233,593. Using the HUD FMR, we can calculate a rent-to-price ratio of approximately 0.47%, suggesting that rental income alone may not cover the full cost of property ownership without additional revenue streams such as appreciation or equity.
The dynamics of days on market (DOM) and price-cut shares, however, are not available for this analysis. These metrics would be crucial in understanding how quickly properties sell and the frequency of price reductions, which could impact the buy-versus-rent decision. Nonetheless, the close alignment between the HUD FMR and market rents supports the notion that voucher tenants can effectively cashflow at or near the FMR, making this a stable investment opportunity.
The strongest investor angle in ZIP 51561 is stability. Given the tight correlation between the HUD FMR and market rents, landlords and small-portfolio investors can expect consistent cashflows with minimal risk of vacancy or rent delinquency.
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.