Location: Tama County, IA | Metro: Tama 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 | $750 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $160,996 | 0.63% | D |
| 3BR | $1,280 | $180,656 | 0.71% | D |
| 4BR | $1,410 | $197,038 | 0.72% | D |
U.S. Census Bureau data (2024)
The ZIP code 52342 in Toledo, IA, is characterized by a significant portion of renters, with 37.2% of the population occupying rental properties. This suggests a moderately renter-heavy environment, though it's not overwhelmingly dominated by tenants. Given the total population of 2,705, approximately 1,006 residents are likely to be seeking rental housing. The median household income in this area stands at $57,813, providing a benchmark for assessing affordability.
The market rent for the area is $883, which represents about 15.3% of the median household income. This figure is lower than the Fair Market Rent (FMR) of $1,050 for the metro area, indicating that Toledo, IA, offers more affordable rental options compared to the broader region. The difference between the market rent and the FMR suggests that there could be a substantial demand for Section 8 vouchers, as many local renters might find it challenging to afford higher rents without assistance.
A landlord in ZIP 52342 should anticipate a tenant pool that heavily relies on Section 8 vouchers due to the disparity between local incomes and the FMR. The typical tenant will likely have a monthly income below the median, necessitating government subsidies to meet their housing needs. With the median income being relatively low, the majority of tenants will require financial aid to cover rent, making the ZIP code attractive for those who can accept voucher tenants.
To summarize, the ZIP code 52342 in Toledo, IA, is a moderately renter-heavy area with a strong likelihood of deep voucher demand. Landlords should prepare for a tenant base that includes a significant number of individuals utilizing Section 8 vouchers to secure affordable housing. The combination of a median income of $57,813 and a market rent of $883 makes it imperative for landlords to consider accepting vouchers to remain competitive and attract tenants in this 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.