Location: Benton County, IA | Metro: Benton County, 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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $328,021 | 0.37% | F |
| 4BR | $1,220 | $390,731 | 0.31% | F |
| 5BR | $1,415 | $440,681 | 0.32% | F |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 52206 presents several challenges for first-time Section 8 landlords. Tenant turnover is a significant risk, with market rents at $604 falling short of the Fair Market Rent (FMR) of $890 for FY 2024. This gap suggests that tenants might struggle to cover the difference, leading to higher churn rates and potential financial strain on landlords.
Vacancy exposure is another concern, as the Days on Market (DOM) data is currently unavailable. Without this information, it's difficult to predict how long properties might remain unoccupied, which can lead to significant losses in rental income. The typical home value in this area stands at $357,703, while the median income is $116,071. These figures indicate that residents might find it challenging to afford the necessary maintenance, potentially leaving landlords responsible for deferred repairs and renovations.
Despite these risks, there is a silver lining in the form of a high renter density. The renter share in ZIP 52206 is 7.7%, which is relatively high and typically correlates with greater demand for housing vouchers. This demand can provide a steady stream of qualified tenants, reducing the likelihood of extended vacancies and ensuring a consistent income source.
In conclusion, the risks associated with Section 8 investments in ZIP 52206 are moderate due to the potential for tenant turnover and vacancy exposure, but they are partially offset by the high renter density and subsequent demand for housing vouchers.
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.