Location: Delaware 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 | $700 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,310 | $314,910 | 0.42% | F |
U.S. Census Bureau data (2024)
ZIP 52078, located in the Delaware County, IA metro area, serves best as a diversifier within a Section 8 portfolio strategy. This designation is based on several key factors derived from the latest real estate data.
The median income in ZIP 52078 is $97,778, which indicates a relatively affluent neighborhood. However, the renter share is notably low at 2.8%, suggesting that most residents own their homes rather than renting. This characteristic makes it less suitable as a cash-flow anchor, where high renter shares typically provide steady rental income.
In terms of cash flow, the Fair Market Rent (FMR) for ZIP 52078 in fiscal year 2024 is set at $860. Given the absence of market rental rates, the spread between the FMR and potential market rates cannot be determined. Nonetheless, the low renter share suggests that rental properties might not generate significant cash flow relative to the median home value of $312,398.
ZIP 52078 does not present itself as an appreciation play due to the lack of available data on price-cut shares and days on market (DOM). These metrics are crucial for identifying markets where home values are likely to appreciate over time. Without these indicators, it is challenging to predict future price movements.
Therefore, ZIP 52078 is best categorized as a diversifier. Its high median income provides stability and reduces the risk of tenant defaults, while the low renter share ensures that rental properties will not dominate the portfolio. By including properties in ZIP 52078, landlords and small-portfolio investors can balance their investments with assets in a more stable and affluent area, without relying heavily on rental income for cash flow. This approach allows for a well-rounded portfolio that can withstand various market conditions.
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.