Location: Fremont County, IA | Metro: Fremont 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 | $1,030 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,920 | $299,397 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,380 for ZIP 51654 can sufficiently cover the mortgage on a home valued at $217,624. To address this concern, we need to consider current mortgage rates. According to recent data, the typical interest rate for a 30-year fixed mortgage is around 5%. Using this rate, the monthly principal and interest payment on a $217,624 home would be approximately $1,160. Therefore, the FMR of $1,380 can indeed cover the mortgage, leaving a buffer for maintenance and other expenses.
The rental vacancy rate in ZIP 51654 is reported to be 0.00%, significantly below the national average of 10.12%. This suggests that there is strong demand for rental properties in the area. However, only 22.7% of the population rents their homes, which could raise doubts about the sustainability of rental income. While the low vacancy rate indicates a robust rental market, it is important to note that the percentage of renters is relatively low compared to other areas. This means that while there is demand, it may be limited to a smaller pool of potential tenants.
Another objection might be whether HUD vouchers will keep pace with market rents, which are currently at $1,725. ZIP 51654's FMR is set at $1,380, which is lower than the market rent. This discrepancy could make it challenging for voucher holders to afford market-rate housing. However, the Housing Choice Voucher program adjusts its payment standards annually based on local market conditions. Investors should monitor these adjustments closely to ensure that they remain competitive with market rents.
In summary, the FMR of $1,380 can cover the mortgage on a $217,624 home, and there is strong demand for rental properties in ZIP 51654. However, the percentage of renters is relatively low, and HUD vouchers may struggle to keep up with rising market rents. These factors should be carefully considered when making investment decisions in this ZIP code.
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.