Location: Iowa City, IA | Metro: Iowa City, 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 | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $164,208 | 0.72% | D |
| 3BR | $1,630 | $284,290 | 0.57% | F |
| 4BR | $1,970 | $403,064 | 0.49% | F |
| 5BR | $2,285 | $610,804 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 52241, located in Coralville, IA, is part of the larger Iowa City, IA HUD Metro FMR Area. To better understand its position within this metro area, let's examine the specific figures provided: the Fair Market Rent (FMR) for ZIP 52241 in fiscal year 2024 is $1040, the market rent is $1,278, the median home value is $256,921, and the renter share is 44.0%. These figures offer insights into how 52241 compares to typical ZIP codes within the Iowa City, IA HUD Metro FMR Area.
According to recent data, the FMR for a two-bedroom unit in the Iowa City, IA HUD Metro FMR Area is $1,105 per month for fiscal year 2025. This means that ZIP 52241's FMR of $1040 is slightly below the metro average, indicating that it offers more affordable housing options for low-income families participating in the Section 8 program.
The market rent in ZIP 52241 is $1,278, which is higher than the FMR but still relatively modest compared to other areas. This suggests that landlords in Coralville can charge slightly above the FMR without making the rent unaffordable for many tenants, providing a reasonable profit margin.
The median home value in ZIP 52241 is $256,921. For context, the FMR trend in the Iowa City, IA HUD Metro FMR Area shows an increase of 4.3% year-over-year, indicating a steady rise in housing costs. However, the specific median home value for the metro area is not directly provided. Given that ZIP 52241's median home value is below the metro-wide FMR trend, it suggests that Coralville is a value pocket within the metro area, offering more accessible property values to first-time buyers and investors.
The renter share in ZIP 52241 is 44.0%, a significant portion of the population. High renter share combined with below-average home values often signals a sweet spot for Section 8 investments. Landlords and small-portfolio investors can capitalize on the strong demand for rental properties among voucher holders, who may find the area more affordable and accessible compared to other parts of the metro area with higher home values and rents.
In summary, ZIP 52241 in Coralville, IA, is positioned as a value pocket within the Iowa City, IA HUD Metro FMR Area. Its below-average FMR, modest market rent, and lower median home values, alongside a substantial renter share, make it an attractive location for Section 8 investments. Landlords can expect a balance between affordability and profitability, with a strong potential for demand from voucher holders.
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.