Location: Iowa County, IA | Metro: Benton County, 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 | $940 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,740 | $248,025 | 0.7% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 52318 stands at $85,625, which provides a foundational context for understanding the local rental market. At a market rate of $1,105, as reported by the Census Bureau's American Community Survey (ACS), the cost of renting in this area is notably high relative to the median income. This means that a significant portion of the income of an average household would be dedicated to covering rent expenses.
To put this into perspective, let’s consider the Federal Market Rent (FMR) for ZIP 52318 in fiscal year 2024, which is set at $1,140. This figure represents the standard payment amount for housing assistance through the Section 8 program. Given that the FMR is slightly higher than the market rate, it suggests that voucher holders might find it easier to secure housing within this ZIP code compared to those paying out-of-pocket.
The ZIP code has a population of 1,099, with 16.4% of residents being renters. This indicates a relatively small pool of potential tenants, which could translate into fierce competition among landlords. The affordability gap between the median income and both the market rate and FMR highlights the financial strain many renters face. For landlords, this means that relying solely on cash-paying tenants could limit the pool of available renters, especially if they are unwilling to accept lower rents.
The takeaway for landlords considering their strategy regarding voucher versus cash-pay tenants is clear: accepting Section 8 vouchers can be a viable approach to ensure steady occupancy rates. While the voucher payment is close to the market rate, it offers a guaranteed source of income and access to a segment of the market that might otherwise struggle to afford living in this area. By diversifying their tenant base to include both voucher recipients and cash-paying tenants, landlords can mitigate risks associated with vacancy and maintain a stable income stream.
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.