Location: Delaware 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 | $760 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $165,400 | 0.59% | F |
| 3BR | $1,350 | $240,773 | 0.56% | F |
| 4BR | $1,620 | $308,427 | 0.53% | F |
| 5BR | $1,879 | $374,330 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52310, located in Monticello, Iowa, reveals several key points regarding its viability for Section 8 real estate investment.
Firstly, the rent math does not favor Section 8 investments. The Fair Market Rent (FMR) for ZIP 52310 in fiscal year 2024 is set at $860, which is significantly higher than the average market rent of $719 reported by the Census Bureau's American Community Survey. This means that landlords accepting Section 8 tenants could potentially earn less than what they would receive from market-rate renters, making it financially unattractive unless there are other incentives or considerations.
Secondly, acquisition costs in the area are moderate. With a median home value of $235,876, purchasing properties can be done without breaking the bank. However, the lack of data on days on market (DOM) and the percentage of homes sold with price cuts suggests that the local housing market might not be very active or competitive, which could affect the ease and speed of property acquisitions.
Lastly, there is a notable tenant demand in the area. Monticello has a total population of 6,450, with 19.6% of residents being renters. This indicates a steady pool of potential Section 8 tenants, though the relatively low percentage of renters compared to homeowners might suggest that competition for rental units is not intense.
Verdict: While there is a demand for rental properties and the cost of acquiring homes is reasonable, the discrepancy between the Fair Market Rent and the actual market rent makes Section 8 investments less appealing in ZIP 52310. Landlords should carefully weigh the benefits of stable, government-backed rental income against the lower-than-market rates they will receive. Additionally, the lack of detailed market activity data may require further investigation into the local real estate trends before making an informed decision.
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.