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 | $302,130 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52325 in Iowa County, IA, reveals several key points for landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1020, which is significantly higher than the market rent reported by the Census ACS at $679. This discrepancy means that landlords aiming to charge closer to the FMR will likely face challenges in attracting tenants willing to pay above the market rate.
Acquisition of properties in this ZIP code is relatively affordable. With a median home value of $305,641, potential investors can acquire homes at a reasonable cost compared to other areas. However, due to the lack of data on days on market (DOM) and the percentage of homes requiring price cuts, it's difficult to gauge the competitiveness of the housing market. This suggests that while the initial purchase might be affordable, the ongoing market dynamics could affect resale values and the ease of selling properties.
Tenant demand is present but limited. The total population of 477 includes a 19.5% renter share, indicating that approximately 93 individuals are potential renters. Given the small population size, the number of available renters is modest, which could impact occupancy rates and the pool of prospective tenants.
Verdict: ZIP 52325 presents a challenging environment for landlords and small-portfolio investors. The gap between the FMR and the actual market rent suggests that charging higher rents will be difficult. While property acquisition is affordable with a median home value of $305,641, the limited tenant demand poses a risk to maintaining high occupancy rates. Investors should carefully consider these factors before making investment decisions in this area.
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.