Location: Delaware County, IA | Metro: Delaware 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 | $720 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $255,383 | 0.46% | F |
| 4BR | $1,620 | $334,696 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52041 reveals a market that balances between yield and stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone. The Federal Market Rent (FMR) for the area stands at $970 for the fiscal year 2026, which is notably higher than the local market rent of $760. This difference suggests a potential for higher rental yields when properties are rented at or near FMR rates.
However, the stability of the market is influenced by several factors. Firstly, only 19.9% of residents are identified as renters, indicating a lower demand for rentals compared to areas where a larger portion of the population rents. Secondly, the median household income is $89,697, which is relatively strong but does not provide an immediate indicator of rental demand without knowing the average daily days on market (DOM) for rentals, which is currently unavailable. Lastly, the median home value is $225,712, suggesting that homeownership is prevalent and potentially lessening the urgency for rental housing.
To conclude, ZIP 52041 offers a moderate level of yield given the discrepancy between the FMR and the current market rent, but its stability is somewhat compromised by the low percentage of renters and lack of data on rental listing durations. Landlords and small-portfolio investors should consider these figures carefully when evaluating investment opportunities in this area. A strategy that aims to capture higher yields while mitigating risks associated with lower overall rental demand would be advisable.
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.