Location: Fayette County, IA | Metro: Fayette 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 | $740 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $150,569 | 0.66% | D |
| 3BR | $1,320 | $202,377 | 0.65% | D |
| 4BR | $1,390 | $245,975 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 52142, located in Fayette, IA, presents an interesting balance between yield and stability for real-estate investors. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, which is notably lower than the market rent of $1,319. This suggests that there is potential for higher rental yields if properties can be leased out at market rates rather than the FMR. However, the median home value of $169,640 indicates that the capital investment required to enter this market is relatively low compared to other areas.
Moving to the stability axis, the ZIP code has a significant 34.1% of its population renting homes, which is a positive indicator for demand. Unfortunately, the lack of data on the number of days on market (DOM) makes it difficult to assess how quickly rental properties might turn over. The average household income of $56,875 provides insight into the economic strength of the tenant pool, though this figure alone does not fully capture the financial health and stability of the local economy.
Based on these figures, ZIP 52142 appears to be a market offering moderate yield opportunities, especially for those willing to lease properties above the FMR. The substantial percentage of renters points towards a steady cash flow potential, but the absence of DOM data introduces some uncertainty regarding the stability of rental tenancy. Investors should focus on securing properties below the median home value and aim to achieve market rents to maximize returns. Additionally, due diligence should be conducted to understand the local economy beyond just income levels, ensuring a stable tenant base.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.