Location: Poweshiek County, IA | Metro: Iowa County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52232, located in Poweshiek County, IA metro, reveals several key points for potential real estate investments, particularly focusing on Section 8 rental properties.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area, set at $950 for fiscal year 2026, provides a benchmark for rental pricing. However, the lack of available market rent data makes it challenging to directly compare these figures. Landlords should consider that the FMR is designed to ensure affordability for low-income families, and while it may not reflect the exact market conditions, it serves as a reliable guideline for rental income expectations.
Regarding the affordability of acquisition, the median home value of $220,071 suggests that purchasing a property in this ZIP code is relatively cost-effective compared to other areas in the United States. The absence of specific days-on-market (DOM) and price-cut share percentages indicates that the local real estate market may be stable, but this also means that landlords need to conduct further research to understand the typical time frame for selling homes and the frequency of price reductions.
Lastly, there is a consideration of tenant demand. With a total population of 277 and a renter share of 5.9%, the number of potential tenants is limited. This low percentage of renters implies that the majority of residents in ZIP 52232 own their homes, which could result in a smaller pool of prospective Section 8 tenants. Landlords and small-portfolio investors must carefully assess the local demand for rental properties to ensure a steady stream of qualified applicants.
In summary, while the median home value in ZIP 52232 presents an opportunity for affordable acquisitions, the limited market rent data and low renter share pose challenges. The FMR of $950 offers a clear guideline for rental income, yet the restricted number of potential tenants—only about 5.9% of the population—are likely to impact the availability of qualified Section 8 applicants. Therefore, investing in this ZIP code requires a strategic approach, considering the niche market for rental properties and ensuring alignment with the local housing needs and federal guidelines.
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.