Location: Louisa 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 | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,480 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,140 | $204,801 | 0.56% | F |
| 3BR | $1,480 | $334,746 | 0.44% | F |
| 4BR | $1,730 | $417,041 | 0.41% | F |
| 5BR | $2,007 | $545,071 | 0.37% | F |
U.S. Census Bureau data (2024)
19.1% of the residents in ZIP code 52327, Riverside, IA, are renters, indicating a modest demand for rental properties. The Fair Market Rent (FMR) for Section 8 housing in this area for fiscal year 2024 is set at $1060, which is significantly lower than the $1,304 average market rent reported by the Census ACS. This discrepancy suggests that landlords may face challenges in covering their costs if they rely solely on Section 8 rents.
The median home value in Riverside, IA, stands at $346,476, reflecting a stable housing market. However, the median household income of $86,942 might limit the financial flexibility of tenants, especially those participating in the Section 8 program, who often have limited resources.
Despite the lack of specific data regarding days on market (DOM) and the percentage of price-cut shares, the economic indicators paint a picture of a balanced but cautious investment opportunity. The lower FMR compared to the market rent could mean that landlords would need to carefully manage expenses and consider supplementary income sources or property improvements to maintain profitability.
A strong presence of Section 8 participants can be beneficial for landlords looking for reliable tenants with government-backed rent payments. However, it also means adhering to federal guidelines and inspections, which could impact the overall management of the property.
In conclusion, while the median home value and renter share suggest a stable environment, the gap between Section 8 FMR and market rents highlights the need for strategic planning. For landlords and small-portfolio investors, Riverside, IA, offers a viable but competitive Section 8 market.
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.