Location: Poweshiek County, IA | Metro: Iowa 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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $126,687 | 0.73% | D |
| 3BR | $1,280 | $184,954 | 0.69% | D |
| 4BR | $1,520 | $208,996 | 0.73% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 52347 (Victor, IA) might raise several objections regarding the feasibility of investing in the area. Let's address these concerns with the data available.
Objection 1: Will Fair Market Rent (FMR) of $920 (metro FY 2026) cover the mortgage on a $164,319 home?
The FMR of $920 is projected to be higher than the current average rent of $828 per month. However, whether this will cover the mortgage depends on the interest rate and terms of the loan. Assuming a typical 30-year fixed-rate mortgage with an interest rate around 5%, the monthly payment on a $164,319 home would be approximately $880. Therefore, the FMR does provide a buffer to cover the mortgage, but it is tight.
Objection 2: Is there enough renter demand at 8.7%?
The renter demand in Victor appears to be modest at 8.7%, indicating that only a small portion of the housing stock is occupied by renters. This could suggest limited opportunities for rental income. However, according to Sperling's BestPlaces, renters make up 22.1% of the Victor population, which is slightly higher than the initial objection figure. This suggests that while the demand is not overwhelming, there is a steady base of renters.
Objection 3: Will vouchers keep pace with $717 market rents?
The current market rent of $717 is lower than the projected FMR of $920, indicating potential growth in rental rates. However, the effectiveness of voucher programs in keeping pace with market rents is uncertain. The U.S. Department of Housing and Urban Development (HUD) periodically adjusts FMRs, but local voucher programs may not always align with these adjustments due to funding constraints. Thus, while FMRs are expected to rise, the extent to which local voucher programs will adjust remains unclear.
In summary, while the data shows some positive indicators for investment in ZIP 52347, such as the FMR covering the mortgage, the renter demand is moderate and the future stability of voucher programs is uncertain. These factors should be carefully considered before making any investment decisions.
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.