Location: Delaware 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 | $670 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,350 |
| 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 | $970 | $183,745 | 0.53% | F |
| 3BR | $1,350 | $270,092 | 0.5% | F |
| 4BR | $1,620 | $274,364 | 0.59% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 52218, Coggon, IA, are significant. Tenant turnover is a critical issue, with the market rent at $642 compared to the Fair Market Rent (FMR) of $860 for FY 2024. This disparity suggests that tenants might be attracted to higher-paying opportunities outside the Section 8 program, leading to frequent moves and high vacancy rates.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which implies uncertainty about how long it might take to fill a vacant unit. Given the lower market rent relative to FMR, it's possible that vacancies will persist longer than desired, reducing cash flow and increasing financial pressure.
Deferred maintenance is also a risk factor. With a typical home value of $237,324 and a median income of $82,344, homeowners may struggle to keep up with necessary repairs and improvements. This can lead to properties falling into disrepair, which not only impacts the quality of life for tenants but also increases the likelihood of compliance issues with the housing authority.
However, these risks must be weighed against the high renter density in the area. The 7.7% renter share indicates a robust demand for rental properties, which often translates into a strong interest in Section 8 vouchers. In areas with a high concentration of renters, there tends to be a steady pool of voucher holders looking for suitable housing, potentially mitigating some of the turnover and vacancy risks.
In conclusion, despite the challenges, the high renter density in Coggon, IA, makes it a moderate risk for a first-time Section 8 landlord. While careful management and maintenance are essential, the demand for affordable housing supports 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.