Location: Cedar Rapids, 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 | $740 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $126,295 | 0.77% | D |
| 3BR | $1,350 | $252,159 | 0.54% | F |
| 4BR | $1,620 | $367,521 | 0.44% | F |
| 5BR | $1,879 | $462,857 | 0.41% | F |
U.S. Census Bureau data (2024)
The Hiawatha, IA (ZIP 52233) area presents a favorable market for Section 8 investors, particularly when considering the Federal Market Rent (FMR) set by HUD for fiscal year 2024. The HUD FMR for this region is established at $900, which exceeds the market rent of $855 as reported by the Census ACS. This means that landlords participating in the Section 8 program can expect to cashflow positively, as the voucher amount covers the average market rent with a surplus.
To further analyze the investment potential, we can calculate the rent-to-price ratio using the median home value of $253,560. With an average market rent of $855, the rent-to-price ratio is approximately 0.41%, indicating a relatively low rental yield compared to the property value. However, this metric alone does not fully capture the benefits of the Section 8 program, which includes stable and timely rental payments backed by the government.
The dynamics between rental and home purchase markets in Hiawatha suggest that while there is no available data on the median Days on Market (DOM) or the percentage of price cuts, the consistent rental income from voucher tenants can provide a more stable investment environment compared to the fluctuating nature of home sales. The lack of significant price reductions or extended listing periods implies a balanced market where neither buyers nor sellers have overwhelming leverage.
In conclusion, the strongest investor angle in the Hiawatha, IA ZIP 52233 area is cashflow. Landlords can expect to generate positive cashflow due to the HUD FMR being higher than the market rent, making it an attractive option for those seeking reliable rental income through the Section 8 program.
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.