Location: Delaware County, IA | Metro: Clayton 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 | $810 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $223,467 | 0.51% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 52035 reveals a favorable cashflow scenario when comparing HUD Fair Market Rent (FMR) rates against actual market rents. The HUD FMR for the Delaware County, IA metro area is set at $920 for fiscal year 2026. In contrast, the Census ACS data shows an average market rent of $755. This means that voucher tenants can cashflow at the FMR rate, providing landlords with a significant buffer over the typical rental prices.
To further analyze the investment potential, we consider the median home value in ZIP 52035, which stands at $240,264. By calculating the rent-to-price ratio using the HUD FMR, we find it to be approximately 0.48%, indicating a relatively low cost of renting compared to buying. This suggests that the rental market remains competitive even as property values increase.
Note that the data does not provide a specific median Days on Market (DOM) or percentage of price cuts, but given the positive cashflow dynamics, these factors are less critical for immediate rental decisions. However, they would play a role in assessing long-term buy-and-hold strategies.
The strongest investor angle in ZIP 52035 is cashflow. With the HUD FMR significantly above the market rent, landlords can expect steady and reliable income from voucher tenants without the need for premium units. This makes Section 8 participation particularly attractive for those looking to maximize their monthly returns.
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.