Location: Benton County, IA | Metro: Benton County, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The ZIP code 52313, located in Benton County, Iowa, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for FY 2024, which is set at $900, and the current market rent of $959. The $59 difference represents a manageable gap that can be bridged through effective property management practices.
In addition to the rent spread, the median home value in ZIP 52313 stands at $239,935. This figure indicates a relatively stable housing market where property values are unlikely to fluctuate dramatically, thus providing a secure foundation for long-term investment. Landlords and small-portfolio investors can rely on consistent rental income without the risk of significant property value depreciation.
ZIP 52313 does not present an opportunity for an appreciation play due to the lack of specific data on price-cut shares and days on market (DOM). These metrics would typically indicate a volatile market where property values could increase rapidly, but the absence of such information suggests a steady rather than a dynamic market environment.
While ZIP 52313 could serve as a diversifier given its 20.2% renter share, the median income of $91,146 leans towards a more affluent demographic. This higher income level reduces the reliance on Section 8 vouchers among residents, making it less ideal for diversifying a portfolio that aims to balance high-income and low-income areas. Instead, the focus should remain on leveraging the ZIP's stability to ensure reliable cash flow.
To summarize, ZIP 52313 is best positioned as a cash-flow anchor in a Section 8 portfolio strategy due to the favorable rent spread and stable property values. This approach ensures a steady stream of income with minimal risk, aligning well with conservative investment goals.
Data Sources: FMR data from HUD (2027). 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.