Location: Iowa City, IA | Metro: Iowa City, 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 | $1,050 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $171,104 | 0.77% | D |
| 3BR | $1,810 | $287,320 | 0.63% | D |
| 4BR | $2,190 | $406,556 | 0.54% | F |
| 5BR | $2,540 | $548,564 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 52317, North Liberty, IA, reveals a rental market where the Federal Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for Fiscal Year 2024 is $1,260. This figure is notably lower than the current market rent, known as the Zillow Rent Index (ZORI), which stands at $1,521. Given these numbers, voucher tenants in this area will only cashflow at the HUD FMR with premium units, as the difference between the FMR and market rent is significant.
To further understand the dynamics, consider the median home value in the area, which is $307,491. This places the rent-to-price ratio at approximately 0.49%, indicating that the cost of renting is relatively low compared to the cost of owning a home. This ratio can be useful for investors looking to compare potential returns from rental income versus property appreciation.
The rental market in ZIP 52317 shows strong demand, with a median Days on Market (DOM) of just 25 days. This suggests that rental properties are typically occupied quickly, which is beneficial for maintaining steady cash flow. Additionally, the fact that only 0.2% of listings experience price cuts indicates that landlords can generally maintain their asking rents without needing to adjust downward, contributing to market stability.
The strongest angle for Section 8 investors in this market is stability. With a robust rental market, quick occupancy rates, and minimal need for price adjustments, investors can expect consistent cash flow and a reliable tenant base, even when operating at the lower HUD FMR levels.
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.