Location: Tama County, IA | Metro: Tama 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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,240 | $184,801 | 0.67% | D |
U.S. Census Bureau data (2024)
15.3% of residents in ZIP 52217 are renters, indicating a moderate demand for rental properties in the area. The $1,040 Fair Market Rent (FMR) set for metro FY 2026 suggests that landlords can expect to receive this amount per unit for Section 8 eligible tenants. Comparatively, the $1,577 market rent figure derived from Census ACS data shows that non-subsidized rents are significantly higher, implying that landlords might see a premium when renting to unsubsidized tenants.
$194,208 is the median home value in ZIP 52217, which places it below the national average and indicates that the housing market is relatively affordable. This affordability could attract a variety of potential tenants, including those who rely on government subsidies such as Section 8 vouchers. Additionally, the median income of $83,750 provides insight into the economic health of the area, suggesting that many residents have the means to afford higher rents or purchase homes outright.
The lack of data on days on market (DOM) and the percentage of price-cut share suggests either a stable market or insufficient data points to make a definitive assessment. However, given the lower median home value and the disparity between FMR and market rent, it's reasonable to infer that the rental market, particularly for subsidized units, could be robust.
In conclusion, landlords and small-portfolio investors in ZIP 52217 should consider the $1,040 FMR as a baseline for Section 8 rentals, while the $1,577 market rent offers a benchmark for unsubsidized units. The $83,750 median income supports the idea that the local economy can sustain both subsidized and unsubsidized housing options. Given these factors, the Section 8 program remains a viable option for maintaining occupancy rates and ensuring steady cash flow in a moderately competitive rental market.
Verdict: Section 8 is a solid choice for landlords in ZIP 52217 due to the moderate renter share and stable economic indicators.
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.