Location: Iowa City, 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 | $930 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $378,100 | 0.43% | F |
| 4BR | $1,960 | $577,208 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 52338 has a population of 3,934 residents, with only 6.7% being renters. This indicates that the area is predominantly homeowner-dominated rather than a renter-heavy zone. The median household income stands at $119,605, which contrasts sharply with the market rent of $1,215.
To put this into perspective, the typical rent consumes approximately 10.1% of the local median income. This is calculated by dividing the market rent ($1,215) by the median household income ($119,605) and multiplying by 12 months to annualize the rent, then dividing by the median income again. This percentage suggests that the rent is relatively affordable for most residents, but it also implies that there might not be a deep demand for rental properties, especially those relying on Section 8 vouchers.
Further analysis reveals that the Fair Market Rent (FMR) for the area is set at $1,020 for FY 2024, indicating that the actual market rent is higher than what the government considers fair for the region. This gap between the FMR and the actual market rent could deter potential tenants who rely solely on Section 8 vouchers, as they might find it challenging to cover the additional costs without supplementary income.
A landlord in ZIP 52338 can expect a tenant profile that is likely to include individuals or families with incomes above the poverty line, given the high median income level. However, due to the limited number of renters, competition for tenants may be fierce, particularly for those seeking properties that accept Section 8 vouchers. Landlords should prepare to offer competitive amenities and possibly consider flexible rental policies to attract and retain tenants in this market.
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.