Location: Cedar County, IA | Metro: Cedar County, IA
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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $185,742 | 0.74% | D |
U.S. Census Bureau data (2024)
ZIP 52337 in Cedar County, Iowa, serves as a cash-flow anchor within a Section 8 portfolio strategy. The median home value stands at $170,438, while the market rent is $936 per month. This ZIP code has a median income of $60,833, indicating a stable tenant base. The Federal Market Rent (FMR) for the metro area in FY 2026 is $1,040, which is $104 above the market rent. This spread provides a cushion for landlords and small-portfolio investors, ensuring steady cash flow.
The cap rate of 4.3% suggests that rental income covers the mortgage payments and operating expenses, making it a reliable source of cash flow. Although the current 30-year fixed mortgage rate of 6.3% exceeds the cap rate, leading to negative leverage, the 5-year internal rate of return (IRR) is 9.7%. This indicates that appreciation and tax benefits can offset the higher financing costs, providing a solid long-term investment.
ZIP 52337 does not present significant opportunities for appreciation or diversification. The appreciation trend over the past five years has been moderate at 5.4%, and there is no notable price-cut share or days on market (DOM) data suggesting rapid price increases. Additionally, the renter share of 27.7% is typical for the area and does not offer substantial diversification benefits beyond what is already expected in the broader Cedar County market.
In conclusion, ZIP 52337 is best suited as a cash-flow anchor due to its stable rental income and positive cash flow potential, despite the current high mortgage rates. The market offers a balanced environment for both buyers and sellers, with a manageable risk profile.
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.