Location: Clay County, IA | Metro: Clay 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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $135,589 | 1% | B |
U.S. Census Bureau data (2024)
The ZIP code 51357 is situated in a rural area with a total population of 910. The demographic makeup shows that 27.1% of residents are renters, indicating a relatively small rental market. The median household income in this area stands at $68,333, which is modest but sufficient for many families. The median home value is notably lower at $125,953, suggesting that homeownership is more affordable compared to other regions.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 51357 is set at $1,010 for the fiscal year 2026. This is higher than the current market rent of $895, based on Census ACS data. The discrepancy between FMR and market rent can be advantageous for landlords participating in the Section 8 program, as it allows them to charge closer to the FMR rate, thereby increasing their potential income.
Given these economic conditions, ZIP 51357 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the slightly elevated FMR provides a stable income source without the need for extensive property management. Meanwhile, value-add buyers could leverage the low median home value to purchase properties below market rates and improve them, potentially renting them out at the higher FMR rate. This strategy can lead to significant returns over time.
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.