Location: Winneshiek County, IA | Metro: Allamakee 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 | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $720 | $244,451 | 0.29% | F |
| 2BR | $940 | $274,054 | 0.34% | F |
| 3BR | $1,230 | $316,637 | 0.39% | F |
| 4BR | $1,260 | $393,760 | 0.32% | F |
| 5BR | $1,462 | $470,189 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 52101, located in Decorah, IA, Winneshiek County, reveals a challenging environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $940 for the fiscal year 2026, while the actual market rent, as measured by Zillow's Owner Occupied Rental Index (ZORI), stands at $1,297. This discrepancy means that voucher tenants will only cashflow in premium units, where the rent is closer to the FMR. Landlords must be selective about their properties to ensure profitability.
To further analyze the investment potential, consider the median home value in the area, which is $325,294. This figure provides a basis for calculating the rent-to-price ratio, an important metric for understanding the relationship between rental income and property value. In Decorah, the rent-to-price ratio is approximately 0.4%, indicating that rental income represents a small portion of the total property value. This suggests that the primary driver of returns in this market is likely to be property appreciation rather than rental income alone.
The dynamics of the local housing market also play a role in the investment decision. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it's evident that the market is stable, with few homes needing to reduce their asking price. This stability can provide a solid foundation for long-term investments, particularly in areas where property values are expected to increase over time.
In conclusion, the strongest investor angle in ZIP 52101 is appreciation. Given the current HUD FMR and market rents, landlords should focus on acquiring properties that offer both appreciation potential and the possibility of cashflow from voucher tenants, especially those in premium units. This approach will maximize returns and align with the existing 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.