Location: Montgomery County, IA | Metro: Montgomery 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 | $780 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $199,987 | 0.72% | D |
| 4BR | $1,560 | $241,915 | 0.64% | D |
U.S. Census Bureau data (2024)
ZIP code 51573, located in Montgomery County, IA metro, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2026 is set at $1,030, which is significantly higher than the current market rent of $875. This creates a positive spread of $155 per month, ensuring that landlords receive a consistent and reliable rental income that exceeds the local market rates.
The median home value in ZIP 51573 is $202,970, indicating that the properties are reasonably priced, making it easier for landlords to acquire new units without a substantial capital outlay. Given that the FMR is above the market rent, landlords can secure tenants through the Section 8 program while still benefiting from a higher rental rate than what the private market offers.
The renter share in this ZIP code is 17.0%, suggesting that there is a moderate demand for rental properties. However, this is balanced by the fact that the median income is relatively high at $86,438, which means that tenants who are not part of the Section 8 program might also be able to afford slightly higher rents, further supporting the viability of this ZIP code as a cash-flow anchor.
In conclusion, ZIP 51573 should be considered an excellent addition to a Section 8 portfolio strategy as a cash-flow anchor due to the favorable spread between the FMR and market rent, combined with a reasonable median home value and moderate renter share. Landlords will benefit from steady and predictable income, which is crucial for maintaining financial stability in their investment portfolios.
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.