Location: Jones County, IA | Metro: Cedar Rapids, IA HUD Metro FMR Area
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 | $780 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $176,601 | 0.64% | D |
| 3BR | $1,480 | $250,163 | 0.59% | F |
| 4BR | $1,620 | $346,062 | 0.47% | F |
| 5BR | $1,879 | $458,060 | 0.41% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 52205, Anamosa, Iowa, reveals a favorable cash flow scenario. The HUD Fair Market Rent (FMR) for the area is set at $1010 per month for FY 2024, while the Census American Community Survey (ACS) indicates a market rent of $963 per month. This means that landlords accepting Section 8 vouchers can expect to cash flow at the FMR without needing to seek premium units.
To further analyze the investment potential, consider the median home value in the area, which stands at $255,945. Using the HUD FMR of $1010, we calculate a rent-to-price ratio of approximately 0.47%, indicating that rental income is relatively low compared to the property value. However, this also suggests that properties are undervalued relative to their rental potential, offering a strong opportunity for appreciation.
The dynamics of rent versus buy in Anamosa are also noteworthy. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it appears that the local housing market is stable and does not typically experience significant fluctuations in pricing or time to sale. This stability provides a secure environment for both rental and ownership investments.
In summary, the strongest angle for Section 8 investors in ZIP 52205 is appreciation. The current disparity between the median home value and the rental income suggests that properties are likely to increase in value over time, providing a solid long-term investment strategy.
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.