Location: Shelby County, IA | Metro: Crawford 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 | $780 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $105,637 | 0.88% | C |
| 3BR | $1,280 | $181,017 | 0.71% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 51528 in Iowa might have several concerns regarding the feasibility of investing in rental properties there. Here, we address those concerns head-on using available data.
Objection 1: Will FMR $920 (metro FY 2026) cover the mortgage on a $155,395 home?
The Fair Market Rent (FMR) for ZIP 51528 is projected to be $920 per month in fiscal year 2026. To determine if this will sufficiently cover the mortgage on a median-priced home of $155,395, we must consider typical interest rates and loan terms. Assuming a fixed-rate mortgage with an interest rate of 4% and a 30-year term, the monthly mortgage payment would be approximately $740. This means that the FMR of $920 would indeed cover the mortgage payment, leaving a buffer of around $180 per month for other expenses such as maintenance, property taxes, and insurance. However, it's important to note that higher interest rates or different loan terms could affect this calculation.
Objection 2: Is there enough renter demand at 33.3%?
Rental demand in ZIP 51528 is indicated by the percentage of renters, which stands at 33.3%. While this figure suggests that a significant portion of the population is renting, it does not directly translate into demand for rental properties. A deeper analysis would require understanding the vacancy rates and the growth trends in the rental market. The data provided does not include these specifics, so while 33.3% indicates a moderate level of demand, it's crucial to investigate further to ensure a steady stream of tenants.
Objection 3: Will vouchers keep pace with $742 market rents?
The average market rent in ZIP 51528 is $742 per month. For voucher holders, the question becomes whether the Housing Choice Voucher program will provide sufficient assistance to meet these rents. According to recent data, the maximum voucher amount can vary widely based on family size and local housing costs. If the voucher amount is less than $742, landlords might face the risk of covering the difference or losing potential tenants who cannot afford the gap. It's advisable to check the latest voucher amounts and their coverage rates to assess the likelihood of keeping pace with market rents.
In summary, while the FMR appears to be adequate for covering mortgage payments, the 33.3% rental rate indicates a moderate but not overwhelming demand. Lastly, the alignment between voucher amounts and market rents requires closer scrutiny to ensure financial viability for landlords. These points highlight the need for careful consideration before making investment decisions in ZIP 51528.
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.