Location: Mahaska County, IA | Metro: Mahaska 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 | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $166,653 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 52534, located in Beacon, Iowa, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the favorable rent-to-price ratio and the ability to generate positive cash flow from the start.
The Fair Market Rent (FMR) for the 52534 ZIP in the Oskaloosa, IA metro area for fiscal year 2026 is set at $920, while the median market rent is approximately $828 per month. Additionally, the median home value stands at $122,973. This means there is a significant spread between the FMR and the market rent, providing a strong opportunity for cash flow generation. The FMR is $920, which is $327 above the median market rent of $593, making it a reliable source of income for landlords.
The ZIP code does not present strong signals for appreciation, with no major percentage increases noted in recent years. The 5-year Compound Annual Growth Rate (CAGR) for home values is listed as N/A, indicating limited historical data for long-term growth projections. However, the current market conditions suggest a stable environment with a solid fit for rental properties.
The renter share in 52534 is 19.4%, and the median income is $54,625. These factors contribute to the area being a viable option for generating consistent rental income. The cap rate, estimated at 5.3%, suggests that while financing costs at the current 30-year fixed mortgage rate of 6.3% might reduce cash-on-cash returns, the overall cash flow remains positive.
In conclusion, ZIP 52534 serves as a cash-flow anchor due to the substantial spread between the FMR ($920) and the market rent ($593), ensuring steady income for landlords and small-portfolio investors. The area's stability and reasonable home values make it a dependable part of a diversified real estate investment strategy.
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.