Location: Fayette County, IA | Metro: Clayton 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 | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $144,433 | 0.66% | D |
| 3BR | $1,240 | $204,635 | 0.61% | D |
| 4BR | $1,360 | $306,093 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 52141, encompassing Elgin, IA, and the broader Fayette County metro area, does not align favorably. The Fair Market Rent (FMR) set at $940 for the fiscal year 2026 is significantly higher than the current market rent of $538 based on Census ACS data. This discrepancy suggests that landlords might struggle to charge rents at the FMR level, given the lower prevailing market rates.
Regarding acquisition affordability, the median home value in ZIP 52141 stands at $258,837. However, due to the lack of available data on days on market (DOM) and the percentage of homes that have had their prices cut, it's challenging to assess the overall ease of acquiring properties. Without these metrics, it's unclear how competitive the market is for property purchases.
Tenant demand is modest in this ZIP code. With a total population of 1,259, only 12.8% are renters. This relatively low share of renters indicates that there may not be a strong pool of potential tenants, which could affect occupancy rates and the ability to find and retain tenants.
In summary, ZIP 52141 presents a challenging investment scenario for landlords and small-portfolio investors. The rent math is unfavorable, with the FMR far exceeding the actual market rent. While the median home value provides some insight into acquisition costs, the absence of DOM and price-cut data makes it difficult to gauge the competitiveness of the market. Furthermore, the limited tenant demand suggests that attracting and retaining renters could be problematic. These factors collectively point towards a less attractive investment opportunity compared to areas with better alignment between market rents and FMRs, stronger tenant demand, and more favorable acquisition 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.