Location: Keokuk County, IA | Metro: Keokuk County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 52231 provides a clear picture of potential investment yields under different rental scenarios. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $940 per month for fiscal year 2026. Annualizing this figure gives us an annual rental income of $11,280. When we compare this to the median home value of $164,671, the implied gross yield is approximately 6.85%. This calculation is derived from the formula: Gross Yield = (Annual Rental Income / Median Home Value).
In contrast, the market rent for a similar unit is reported at $1,125 per month according to Census ACS data. This translates to an annual rental income of $13,500. Using the same median home value, the gross yield in this scenario increases to about 8.20%. These figures provide a direct comparison between the potential returns from Section 8 versus market rent.
The higher gross yield from market rent suggests that it is more financially beneficial for landlords and small-portfolio investors. However, the reality of the situation must be considered. With only 3.6% of the population being renters, the demand for rental properties, including those participating in the Section 8 program, is relatively low. The N/A-day Days on Market (DOM) indicates incomplete data, which could mean either very quick or very slow sales/rental turnovers, adding uncertainty to the analysis.
Given the low renter density, securing a tenant willing to pay market rent might prove challenging. Therefore, while the gross yield from market rent is higher at 8.20%, the actual performance could be closer to the Section 8 scenario due to the difficulty in finding tenants who can afford higher rents. Thus, the 6.85% gross yield from Section 8 represents a more stable, if less lucrative, investment option in ZIP 52231.
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.