Location: Cedar County, IA | Metro: Jones 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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $182,665 | 0.77% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52320 reveals a unique balance between yield and stability, making it an intriguing market for both high-risk/high-reward strategies and steady-cashflow investments. The Federal Market Rent (FMR) for ZIP 52320 in fiscal year 2024 is set at $940, which stands notably above the local market rate of $778. This difference suggests a higher potential rental yield, particularly if the property is leased at or near the FMR. For instance, a landlord could expect an additional $162 per month in rent compared to the market average, translating into significant annual surplus.
However, the median home value of $185,241 introduces a substantial capital investment, which must be weighed against the anticipated rental income. The ratio of renters to homeowners in ZIP 52320 is 30.2%, indicating a moderate level of rental demand. While this figure does not suggest a highly competitive rental market, it also does not indicate a stable homeownership environment that would typically support lower turnover and higher property values.
The average household income of $62,222 provides insight into the financial capacity of potential tenants. This income level is relatively low, suggesting that tenants may be sensitive to rent increases and less likely to afford luxury amenities or high-end properties. Consequently, landlords should focus on maintaining competitive rents and providing basic, well-maintained living spaces to attract and retain tenants.
Classification: ZIP 52320 leans towards being a moderate cashflow zone with some risk factors. The high FMR relative to the market rate supports a decent yield, but the low average income and moderate renter percentage imply a need for careful management to ensure stability. It is not a typical high-yield/low-stability flip-style market due to the lack of data on days on market (DOM), which would otherwise indicate rapid property turnover and speculative investment opportunities. Instead, it offers a middle ground where strategic pricing and maintenance can lead to satisfactory returns without excessive volatility.
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.