Location: Mahaska County, IA | Metro: Keokuk County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 52550, located in Mahaska County, IA metro, presents an interesting scenario for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1,040 for the fiscal year 2026, which closely aligns with the market rent of $1,038 as reported by the Census American Community Survey (ACS).
This near parity between the HUD FMR and the actual market rent means that voucher tenants will cashflow at the FMR rate without requiring premium units. Landlords can expect to cover their expenses and maintain a steady income stream with minimal risk of vacancy, given that the voucher amount matches the prevailing rental rates.
To further analyze the investment potential, consider the median home value in the area, which stands at $111,012. This figure allows us to derive a rent-to-price ratio, which in this case is approximately 1.09%. A low rent-to-price ratio suggests that property values in the area are relatively high compared to rental yields, potentially making homeownership more attractive than renting out properties. However, for investors focused on rental income rather than property appreciation, this ratio indicates a stable market where rents are sufficient to cover costs and provide returns.
Note that the median days on market (DOM) and the percentage of homes that have been price-cut are not available for this specific area. These metrics would typically be useful for understanding the local real estate market's dynamics and how they might affect the decision to rent versus buy. In the absence of these figures, we must rely on the robustness of the FMR and market rent data.
The strongest investor angle in ZIP 52550 is stability. With the HUD FMR matching the market rent, investors can secure consistent cash flow from voucher tenants, ensuring a predictable and reliable income source over time.
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.