Location: Keokuk County, IA | Metro: Iowa County, IA
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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $139,539 | 0.67% | D |
| 3BR | $1,270 | $194,852 | 0.65% | D |
| 4BR | $1,530 | $234,507 | 0.65% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 52316, located in the Keokuk County, IA metro area, reveals several key points that should inform investment decisions. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. This figure is significantly higher than the average market rent of $654 reported by the Census ACS, indicating that voucher tenants will cashflow at FMR levels.
To further understand the potential returns, consider the median home value in the area, which stands at $175,777. Using this data, we can calculate the rent-to-price ratio. Given the average market rent of $654, the ratio is approximately 1:270, suggesting that rental properties in this region are relatively affordable compared to home values. This affordability could attract both renters and buyers, enhancing the stability of the rental market.
The dynamics between renting and buying are crucial for investors. While specific data on days on market (DOM) and the percentage of price cuts are not available, the significant gap between the HUD FMR and the actual market rent implies that voucher holders can afford higher rents without needing substantial price reductions. This supports the idea that voucher tenants will typically cashflow at the FMR rate, making it a reliable source of income for landlords.
In conclusion, the strongest angle for investors in ZIP 52316 is cashflow. The HUD FMR is substantially above the current market rent, ensuring that properties rented to voucher tenants will generate positive cashflow. This makes the area particularly attractive for landlords and small-portfolio investors looking to secure steady rental income.
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.