Location: Winneshiek County, IA | Metro: Howard 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 | $880 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $166,909 | 0.58% | F |
| 3BR | $1,340 | $215,609 | 0.62% | D |
| 4BR | $1,580 | $242,865 | 0.65% | D |
| 5BR | $1,833 | $368,755 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 52136, which encompasses Cresco, IA, and parts of Howard and Winneshiek Counties, presents a clear opportunity for cashflow-positive investments when utilizing the HUD Fair Market Rent (FMR) guidelines. The HUD FMR for the Cresco metro area is set at $1,000 for fiscal year 2026. In comparison, the Census ACS reports an average market rent of $713 for the same region. This indicates that landlords and small-portfolio investors can achieve positive cashflow with properties renting at the HUD FMR, even without premium unit upgrades.
To further analyze the investment potential, consider the median home value in ZIP 52136, which stands at $199,229. Using this figure, we can calculate the rent-to-price ratio. At $713 per month, the annual rent would be approximately $8,556. Dividing this by the median home value gives us a rent-to-price ratio of roughly 4.3%, suggesting that rental income alone can provide a significant return on investment relative to property values.
While the data does not provide specific figures for the median days on market (DOM) or the percentage of homes that experience price cuts, these metrics are typically indicative of the broader housing market's health and can impact the rent-versus-buy dynamics. However, given the disparity between the HUD FMR and the actual market rent, it is evident that voucher tenants can easily find accommodation within their budget, making the area particularly attractive for rental investments.
The strongest angle for investors in ZIP 52136 is cashflow. Properties rented at the HUD FMR of $1,000 will generate a substantial positive cashflow compared to the average market rent of $713, making this an ideal location for those looking to maximize their monthly returns from rental properties.
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.