Location: Clayton County, IA | Metro: Clayton County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52048 reveals several key points that should guide real estate investment decisions.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the Clayton County, IA metro area for fiscal year 2026 is set at $950. However, the actual market rent, based on Census ACS data, stands at $475. This indicates a significant gap between the government's estimate and the current market conditions, suggesting that landlords may find it challenging to justify higher rents to tenants without substantial property upgrades or unique amenities.
Moving on to acquisition affordability, the median home value in ZIP 52048 is $296,951. Given the lack of data on the average number of days on the market (DOM) and the percentage of homes requiring price cuts, it's difficult to assess the ease or difficulty of acquiring properties at fair market values. Landlords must be prepared for potentially longer periods to sell or buy properties, and some may need to negotiate or adjust their asking prices to ensure transactions.
The third consideration is tenant demand. With a total population of 201 and only 15.8% of residents being renters, the pool of potential tenants is quite limited. This low renter share suggests that there might not be sufficient demand to support multiple rental properties in this area, making it a less attractive option for landlords looking to expand their portfolio.
Verdict: Investing in ZIP 52048 presents challenges due to the discrepancy between the FMR and market rent, which may limit profit margins. Additionally, the limited tenant base and potentially unaffordable acquisition costs make this location a high-risk investment. Landlords and small-portfolio investors should carefully weigh these factors before considering an investment in this area.
Data Sources: FMR data from HUD (2027). 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.