Location: Tama County, IA | Metro: Benton County, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The ZIP code 52225 is situated in a predominantly owner-occupied neighborhood with only 1.6% of the 387 residents being renters. The area reflects a strong financial stability with a median household income of $61,944 and a median home value of $234,873. These figures indicate a community where homeownership is the norm, suggesting a relatively affluent and settled environment.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 52225 in fiscal year 2024 is set at $860. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit. Given the limited data on the local market rent, it's prudent to assume that the actual market rents could be higher, making the FMR a conservative estimate. However, the low percentage of renters implies that there might not be a significant demand for rental properties in the area.
In terms of suitability for different types of investors, ZIP 52225 leans more towards being a hands-off voucher operator's territory. The low number of renters suggests that managing a portfolio here would likely involve fewer tenants and thus less active management. For those looking to engage in value-add strategies, the opportunity may be limited due to the already high median home values and stable income levels, which imply a saturated market with little room for increasing rents beyond the FMR.
To summarize, while the Section 8 program offers a guaranteed rent stream at $860 per month, the nature of the ZIP 52225 neighborhood—characterized by high owner occupancy and stable financial conditions—makes it most suitable for landlords who prefer minimal tenant interaction and steady, albeit modest, returns. Value-add opportunities are less evident given the existing market dynamics.
Data Sources: FMR data from HUD (2027). 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.