Location: Benton County, IA | Metro: Benton County, 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 | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $246,567 | 0.58% | F |
| 4BR | $1,530 | $299,621 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 52346 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, as the market rent of $725 is notably lower than the Fair Market Rent (FMR) of $1060 for FY 2024. This disparity suggests that tenants who can afford the higher FMR might prefer non-subsidized housing, leading to higher turnover rates among those relying on Section 8 vouchers.
Vacancy exposure is another issue, particularly since the average days on market (DOM) is listed as N/A. This lack of data implies that there may be unpredictability regarding how quickly properties can be filled, potentially leaving units vacant for extended periods without reliable information to guide expectations.
The deferred maintenance risk is also substantial, especially when considering the typical home value of $296,059 and the median income of $113,342. These figures indicate that homeowners in this area might struggle to keep up with necessary property improvements, which could translate into higher maintenance costs for landlords and the need for more frequent repairs. The financial strain on residents due to the relatively high cost of living could exacerbate these issues.
Despite these risks, the ZIP code has a strong renter share of 12.6%, which typically correlates with higher demand for rental properties, including those accepting Section 8 vouchers. High renter density often stabilizes the market, making it less volatile and providing a steady stream of potential tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.