Location: Clayton County, IA | Metro: Dubuque, IA MSA
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 | $710 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $194,296 | 0.5% | F |
| 3BR | $1,310 | $269,505 | 0.49% | F |
| 4BR | $1,630 | $303,663 | 0.54% | F |
| 5BR | $1,891 | $389,508 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 52052, Guttenberg, IA, provides valuable insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $860 per month. When annualized, this translates to an income of $10,320 per year. In contrast, the market rent for a similar unit, based on Census ACS data, stands at $864 per month, or $10,368 annually.
To calculate the gross yield, we use the median home value of $253,136. For the FMR scenario, the gross yield is approximately 4.07%, calculated by dividing the annualized FMR ($10,320) by the median home value ($253,136). For the market rent scenario, the gross yield slightly improves to about 4.09%, using the annualized market rent ($10,368) divided by the same median home value ($253,136).
Given the 19.3% renter density in Guttenberg, it is important to note that the demand for rental properties, including those participating in the Section 8 program, is relatively low compared to other areas. This lower density suggests that landlords might face challenges in maintaining consistent occupancy rates, especially if they rely solely on Section 8 tenants. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data regarding how quickly properties are rented out, further complicating the assessment of rental speed and efficiency.
The gross yields derived from both the FMR and market rent scenarios are quite similar, differing only by 0.02 percentage points. However, considering the low renter density and the potential difficulties in securing long-term tenants, the FMR scenario, which yields 4.07%, is more realistic. Landlords should be prepared for the possibility of lower occupancy rates and slower turnover times, which could impact their overall returns. While the difference in gross yield is minimal, the stability and predictability of income under the Section 8 program may outweigh the slight increase in yield from market rents.
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.