Location: Iowa County, IA | Metro: Iowa County, IA
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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $175,374 | 0.73% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52251 in Iowa County, IA, reveals several key points that are crucial for landlords and small-portfolio investors considering investment in this area.
Firstly, the rent math does not favorably align with the financial realities. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $920, whereas the actual market rent, as per Census ACS data, stands significantly lower at $567. This discrepancy suggests that landlords may find it challenging to achieve rents close to the FMR without substantial adjustments to their pricing strategies or improvements to their properties.
Secondly, the acquisition cost in this ZIP code appears relatively affordable, with a median home value of $151,752. However, the lack of data on days on market (DOM) and the percentage of homes that have had to reduce their asking price indicates an incomplete picture of the local housing market dynamics. This gap in information should be addressed before making any investment decisions to ensure a comprehensive understanding of property acquisition costs and timelines.
Lastly, tenant demand is another critical factor. With a total population of 544 and only 8.7% being renters, the pool of potential tenants is limited. This low renter share suggests that finding and retaining tenants could be difficult, especially given the modest size of the local rental market.
In conclusion, while the median home value in ZIP 52251 presents a potentially attractive entry point for acquisition, the significant gap between the FMR and actual market rent, combined with the limited tenant base, poses considerable challenges. Landlords and investors must carefully weigh these factors and consider the broader economic context and specific property conditions before committing to investments in this area. The low renter share also implies a need for competitive pricing and possibly targeted marketing efforts to attract and retain tenants.
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.