Location: Fremont County, IA | Metro: Fremont 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 | $1,280 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $89,756 | 1.04% | B |
| 3BR | $1,280 | $182,184 | 0.7% | D |
| 4BR | $1,320 | $204,732 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 51640 in Hamburg, IA, presents an interesting balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920, while the local market rent is estimated at $729. This indicates a potential yield advantage when compared to the median home value of $130,728. However, the stability factors paint a different picture.
The proportion of renters in the area stands at 20.9%, which suggests that the majority of residents are homeowners rather than tenants. While this could imply less demand for rental properties, it also means lower competition among landlords. Unfortunately, the data does not provide the average number of days on market (DOM), which would be crucial for assessing how quickly properties can be rented out. The median household income is $65,385, indicating a moderate financial standing for the area's residents.
Given these figures, ZIP 51640 leans towards being a steady-cashflow zone. The relatively low renter percentage points to a stable housing market where property values are unlikely to fluctuate wildly. Moreover, the income level supports a sustainable rental market, ensuring that tenants can afford their monthly payments. Although the FMR is higher than the actual market rent, this does not necessarily indicate a high-yield market due to the significant home values, suggesting that flipping properties for quick profits is not likely to be as advantageous here as in other areas.
To summarize, the key figures driving this classification are the $920 FMR, $729 market rent, and $130,728 median home value. These suggest a modest yield potential but also point to a market with inherent stability, making it suitable for those seeking consistent cash flow rather than rapid appreciation or turnover.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.