Location: Cedar Rapids, 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 | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $435,057 | 0.33% | F |
| 4BR | $1,720 | $549,765 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 52341 presents several challenges for landlords considering participation in the Section 8 program. First, tenant turnover is a significant concern. The Fair Market Rent (FMR) for FY 2024 in this area is set at $1110, but without market rent data, it's difficult to gauge the likelihood of attracting tenants who can afford to pay above the FMR. High turnover can lead to increased costs and vacancies.
Vacancy exposure is another issue. With no available data on days on market (DOM), it's unclear how quickly properties can be filled. However, the typical home value in ZIP 52341 is $415,590, which is considerably higher than the median income of $91,250. This disparity suggests that many potential tenants may struggle to find housing outside of subsidized programs, increasing the risk of extended vacancies if a property becomes available.
Deferred maintenance is also a risk factor. Given the median income level, some tenants might not have the financial capacity to report and address maintenance issues promptly, leading to potential long-term damage and higher repair costs. Landlords must be prepared to manage these issues actively to avoid significant financial losses.
Despite these risks, the high renter share of 2.6% in ZIP 52341 indicates a robust demand for rental housing, which typically translates into a higher demand for Section 8 vouchers. This demand can provide a steady stream of qualified tenants, reducing the overall risk of vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 52341 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a counterbalance through consistent voucher demand.
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.