Location: Keokuk County, IA | Metro: Iowa City, 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $169,738 | 0.61% | D |
| 3BR | $1,430 | $246,361 | 0.58% | F |
| 4BR | $1,730 | $321,225 | 0.54% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 52356 (Wellman, IA) on the yield and stability axes reveals a moderate scenario for real estate investment. With a Fair Market Rent (FMR) of $1020 for fiscal year 2024, compared to the local market rent of $837, the potential yield is evident. The median home value stands at $241,247, indicating a reasonable purchase price relative to the rental income.
On the stability axis, the percentage of renters at 20.0% suggests a limited demand for rental properties. The absence of data regarding days on the market (DOM) indicates a lack of recent sales activity, which could imply either a stable market or a lack of transactions to analyze. The median household income of $57,321 provides insight into the financial capability of residents to afford rent.
To determine whether this is a high-yield/low-stability flip-style market or a steady-cashflow zone, we must consider both the yield and stability factors. The FMR being higher than the market rent implies an opportunity for landlords to increase rents closer to the FMR, thereby boosting yields. However, the relatively low percentage of renters and median income suggest that the market may not be highly volatile but also not extremely stable, as there is a risk that tenants might struggle to meet increased rent levels.
In conclusion, ZIP 52356 presents itself as a middle-ground investment opportunity. It offers a decent yield potential with the ability to raise rents to $1020, which is above the current market rate of $837. Stability is compromised by the low renter population and median income, but the absence of recent sales data prevents a definitive judgment on market volatility. Landlords and small-portfolio investors should proceed with caution, considering the balance between potential returns and the risk of tenant affordability issues.
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.