Location: Jones 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 | $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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $260,827 | 0.52% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 52305 for a Section 8 investment must follow a structured decision-making process. Here’s how to approach it:
1. Clearing Debt Service with FMR: The Fair Market Rent (FMR) for ZIP 52305 in fiscal year 2024 is set at $880. A property valued at $289,919 must be evaluated based on whether this FMR can cover the debt service. To determine this, calculate the annual rental income ($880 * 12 = $10,560) and compare it to the total annual debt service. If the annual rental income exceeds the annual debt service, then the answer is yes; otherwise, it is no.
2. Market Rent vs. FMR: The average market rent in ZIP 52305, according to Census ACS data, is $825. This is below the FMR of $880. For a landlord, this means that while you might not achieve the FMR in the open market, Section 8 vouchers could help bridge the gap between what the market offers and the higher FMR. However, if the market rent significantly lags behind the FMR, there's a risk of not fully utilizing the voucher value.
3. Rental Demand: In ZIP 52305, 17.5% of residents are renters. This percentage indicates the potential demand for rental properties. Additionally, the data shows that the days on market (DOM) is listed as N/A, which could mean that rental listings are either quickly filled or that there isn't sufficient data to make an accurate assessment. Given the 17.5% rental rate, it suggests a moderate demand for rentals. If the N/A DOM implies quick turnover, it supports a positive outlook on demand.
Decision Tree:
In summary, for ZIP 52305, a landlord should first ensure that the FMR of $880 per month can cover the debt service on a property costing $289,919. With market rents at $825, there is room for Section 8 vouchers to increase rental income. The 17.5% rental rate suggests a steady but not overwhelming demand, which, combined with the possibility of quick turnovers, makes ZIP 52305 a viable option for Section 8 investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.