Location: Iowa City, IA | Metro: Iowa City, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
U.S. Census Bureau data (2024)
The ZIP code 52235, located in Hills, Iowa, presents a balanced scenario for landlords and small-portfolio investors when considering both yield and stability.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 52235 in fiscal year 2024 is $1,030. This figure contrasts with the market rent of $1,132, indicating a slight premium for market-rate rentals. The median home value stands at $249,319, which is relatively stable and provides a solid base for investment. The difference between the FMR and market rent suggests that landlords can achieve higher yields by renting above the FMR, though they must be mindful of local affordability.
Stability Analysis: Stability in this market is driven by several factors. Approximately 35.8% of residents are renters, providing a consistent pool of potential tenants. The median household income in the area is $83,333, which supports a reasonable level of economic stability among the population. However, the lack of data on days on market (DOM) indicates some uncertainty regarding the speed at which properties are rented out, which could affect cash flow predictability.
Based on these figures, ZIP 52235 leans towards being a steady-cashflow zone. The relatively high proportion of renters and median income suggest a stable demand for rental properties. The modest difference between the FMR and market rent allows for slightly better yields without straying too far into the riskier territory of high-end rentals that might struggle to find tenants. For investors, this means a predictable and moderate return on investment rather than the high-risk, high-reward strategy associated with flipping properties.
To conclude, while there is potential for modestly higher yields by renting above the FMR, the overall economic conditions and renter demographics point towards a market that prioritizes stability and steady cash flow. This makes ZIP 52235 suitable for those seeking a reliable investment with manageable risks.
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.