Location: Shelby 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 | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $257,382 | 0.52% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 51570 in Shelby County, Iowa, reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for the area stands at $990 for FY 2024, which is significantly higher than the Census ACS-reported market rent of $840. This means that voucher tenants will cashflow at the FMR rate, providing landlords with a substantial buffer against expenses.
To derive the rent-to-price ratio, we use the median home value of $250,951. At the current market rent of $840, the annual rent of $10,080 translates to an approximate rent-to-price ratio of 4%. This ratio suggests that rental income represents a modest portion of the property's value, making it less sensitive to housing price fluctuations and offering stability to investors.
The HUD FMR of $990 allows for a healthy profit margin when compared to the actual market rent. For instance, if a landlord charges the market rent of $840, they can still receive the higher FMR rate from the voucher program, thus generating positive cashflow. Even in premium units, where rents might be higher than the average market rent, the FMR rate provides a significant cushion against increased costs.
Note that the data does not provide the median days on market (DOM) or the percentage of price cuts shared. However, these metrics are typically indicative of broader market conditions that could affect both rental and home purchase decisions. In the absence of such data, the primary focus remains on the robust cashflow potential provided by the voucher program.
The strongest investor angle in ZIP 51570 is cashflow, given the discrepancy between the HUD FMR and the market rent, allowing for positive cashflow even in a conservative market environment.
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.