Location: Clayton 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 | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $156,048 | 0.66% | D |
| 3BR | $1,320 | $189,379 | 0.7% | D |
| 4BR | $1,560 | $239,078 | 0.65% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP 52159, which encompasses Monona, IA, Allamakee County, and Clayton County, IA metro areas, reveals a favorable environment for rental investments. According to HUD's Fair Market Rent (FMR) data for fiscal year 2026, the FMR for the metro area is set at $1,060. In contrast, the market rent based on Census ACS data is lower at $928. This difference indicates that voucher tenants can generally cashflow at the FMR rate, providing landlords with a stable source of income.
To further analyze the investment potential, consider the median home value in the area, which stands at $227,967. Using this figure, we can derive a rent-to-price ratio of approximately 0.41%, suggesting a relatively low-cost market for homeownership compared to renting. However, since the primary focus is on rental properties, this metric primarily serves to highlight the affordability of the area for potential residents.
The data does not provide specific figures for the median days on market (DOM) or the percentage of price cuts shared by sellers, which would typically help in understanding the rent-versus-buy dynamics. Despite this lack of detail, the significant gap between the HUD FMR and the actual market rent implies that landlords can expect consistent cashflow without needing to rely on premium units to achieve profitability.
The strongest investor angle in this market is cashflow, given the disparity between the HUD FMR and the current market rent, ensuring a reliable and steady income stream for those who participate in the Section 8 program.
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.