Location: Cedar County, 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $244,754 | 0.42% | F |
| 3BR | $1,430 | $300,802 | 0.48% | F |
| 4BR | $1,730 | $361,521 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 52253, Lisbon, IA, are significant. First, consider the tenant turnover rate, which is likely to be higher due to the discrepancy between the market rent of $862 and the Fair Market Rent (FMR) of $1020 for fiscal year 2024. This difference can lead to tenants seeking more affordable housing, increasing the likelihood of frequent moves and leaving landlords with the burden of finding new tenants. Second, the vacancy exposure is a concern, as the Days on Market (DOM) for vacant properties is not available. Without this data, it's challenging to predict how long a property might remain unoccupied, thus reducing rental income. Lastly, there is a risk associated with deferred maintenance. The typical home value in the area is $301,158, while the median household income is $104,821. This suggests that residents may struggle to afford major repairs, leading to potential deterioration of the property over time.
Despite these challenges, the high renter share of 15.6% in ZIP 52253 provides a counterbalance. A larger proportion of renters often indicates higher demand for housing assistance programs like Section 8 vouchers. This increased demand can stabilize occupancy rates and reduce the financial impact of vacancy periods. Furthermore, the concentration of renters may create a supportive community for landlords who manage their properties effectively, ensuring a steady stream of applicants and minimizing the risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 52253, Lisbon, IA.
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.