Location: Iowa City, 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 | $281,892 | 0.37% | F |
| 3BR | $1,430 | $349,494 | 0.41% | F |
| 4BR | $1,730 | $376,288 | 0.46% | F |
| 5BR | $2,007 | $483,220 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 52314 in Mount Vernon, IA, reveals that the Housing Choice Voucher Program's Fair Market Rent (FMR) of $1020 for fiscal year 2024 significantly exceeds the average market rent of $795 as reported by the Census Bureau's American Community Survey (ACS). This gap suggests that voucher tenants can easily cashflow at the HUD FMR rate without needing premium units, making it an attractive option for landlords and small-portfolio investors.
To further analyze the investment potential, consider the median home value in the area, which stands at $342,305. The rent-to-price ratio calculated using the HUD FMR is approximately 0.30%, indicating a relatively low rental yield compared to property values. However, this does not necessarily diminish the appeal of the area, as the primary focus for Section 8 investors is often on stable, guaranteed income rather than high rental yields.
The dynamics between renting and buying in the area are also worth noting. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, the real estate market appears to be stable, suggesting little pressure on landlords to lower rents to compete with homeowners. This stability further supports the attractiveness of the area for investors looking for consistent returns.
In conclusion, the strongest investor angle in ZIP 52314 is the cashflow potential due to the significant difference between the HUD FMR and the actual market rent. Landlords can expect to receive higher rents through the Section 8 program, providing a solid financial foundation for their investments.
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.