Location: Winneshiek County, IA | Metro: Fayette 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $192,058 | 0.48% | F |
| 3BR | $1,210 | $250,410 | 0.48% | F |
| 4BR | $1,300 | $348,661 | 0.37% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 52161, which includes Ossian, Iowa, stands at $87,870. At first glance, this figure might suggest financial stability for households. However, when considering the market rate for rent, which is $781 according to the Census Bureau's American Community Survey (ACS), the reality becomes more nuanced.
To frame this from the renter's perspective, let's break down the numbers. A household earning the median income would allocate approximately 10% of their annual income towards rent at the market rate. This is well within the generally recommended guideline that no more than 30% of a household's income should go to housing costs. Yet, the actual cost of living and other expenses must also be factored in to determine true affordability.
Comparatively, the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026 is $920. This is significantly higher than the current market rate of $781, indicating that the local rental market is currently undervalued relative to the federal standard. For renters, this means that they could potentially find housing within their budget, but the discrepancy between the FMR and market rate highlights an opportunity for landlords to adjust their pricing closer to the FMR without alienating tenants.
Given that only 17.2% of the 1,532 population are renters, the competition among landlords is relatively low. This translates into fewer options for tenants, allowing landlords to command slightly higher rents without fear of losing tenants to competitors. However, it also suggests that there is limited demand, meaning that landlords must carefully balance their pricing strategy to attract and retain tenants.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. Vouchers provide a guaranteed source of income, albeit at a fixed rate of $920, which aligns with the FMR. For landlords who can manage properties efficiently and keep operating costs low, accepting vouchers can be a stable option. On the other hand, landlords who aim to maximize their profit margins should consider raising their rents closer to the FMR, leveraging the lower competition to do so. This approach requires attracting tenants who can afford higher rents, possibly through improvements in property quality or location advantages.
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.