Location: Benton County, IA | Metro: Cedar Rapids, 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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $208,343 | 0.56% | F |
| 3BR | $1,500 | $287,936 | 0.52% | F |
| 4BR | $1,620 | $395,722 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP 52332, located in Shellsburg, IA within the HUD Metro FMR Area for Benton County, IA, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area is set at $980 for FY 2024, which exceeds the current market rent of $961. This $19 spread ensures that properties in this ZIP code will generate steady, reliable rental income, especially when considering the subsidized nature of Section 8 tenancy.
The median home value in ZIP 52332 stands at $314,209. While this figure might seem high compared to the rental rates, it's important to note that the median income in the area is $92,708. This relatively high median income suggests that the local economy supports a mix of homeowners and renters, with a 11.0% renter share. However, given the disparity between median home values and median incomes, many residents likely find renting more affordable, making Section 8 properties particularly attractive.
As a cash-flow anchor, ZIP 52332 provides stability and predictability to a landlord's investment portfolio. Unlike areas where rental income fluctuates due to market volatility or where appreciation plays a significant role in investment returns, this ZIP code offers consistent cash flow. The fact that there is no specific percentage for price-cut share or days on market (DOM) indicates that the housing market here is stable and does not require frequent adjustments to rental pricing or prolonged vacancy periods to attract tenants.
In conclusion, ZIP 52332 is best categorized as a cash-flow anchor within a Section 8 portfolio strategy. Its slightly above-market FMR rate guarantees positive cash flow, while the stable economic conditions and moderate renter share ensure that properties remain occupied without the need for drastic measures to attract tenants. For landlords and small-portfolio investors, this ZIP code represents a solid, dependable investment opportunity.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.