Location: Iowa County, 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 | $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 |
|---|---|---|---|---|
| 3BR | $1,430 | $361,752 | 0.4% | F |
| 4BR | $1,730 | $474,312 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52322 reveals several key points for landlords and small-portfolio investors considering investment in this area.
The rent math does not work favorably for landlords. The Fair Market Rent (FMR) set at $1020 for FY 2024 is higher than the market rent reported by the Census ACS, which stands at $965. This suggests that landlords might struggle to charge the FMR without facing vacancy issues, as the local market is willing to pay less than the government-set benchmark.
Acquisition is moderately affordable, with a median home value of $368,010. However, the lack of data on days on market (DOM) and the percentage of homes that have been subject to price cuts indicates that there may be limited information on how quickly properties sell and whether they are often discounted. This could make it challenging to assess the liquidity and pricing dynamics of the real estate market in this area.
Tenant demand is relatively low in ZIP 52322. With a total population of 2,266, only 16.7% are renters. This means that the number of potential tenants is limited, possibly making it difficult to fill vacancies and maintain steady rental income.
Verdict: ZIP 52322 presents a challenging environment for real estate investment due to unfavorable rent math and limited tenant demand. While the median home value suggests moderate affordability, the lack of detailed market data on sales performance makes it hard to gauge the overall attractiveness of the area for acquiring new rental properties. Investors should proceed with caution and consider other factors such as property management costs and local economic conditions before committing to investments here.
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.