Location: Wapello County, IA | Metro: Davis 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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $264,100 | 0.46% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 52536 is set at $920 for the fiscal year 2026. This figure represents the maximum amount that landlords can charge for a Section 8 rental unit in this area, not the actual rent that tenants will pay. The FMR is determined by the U.S. Department of Housing and Urban Development (HUD) to ensure that rents are reasonable and comparable to market rates.
In comparison, the average rent for the same ZIP code based on Census ACS data is $626. This suggests that the FMR is higher than the typical market rate, potentially offering landlords a better financial return when participating in the Section 8 program. However, it's important to note that the actual rent paid by tenants will be subsidized by the government, and the landlord will receive the difference between the tenant's contribution and the FMR.
The 13.5% renter share indicates that a significant portion of the population in ZIP 52536 relies on rental housing. This means there is a steady demand for rental properties, particularly those that qualify under the Section 8 program. With a median home value of approximately $232,368, acquiring a property in this area could be a worthwhile investment for those looking to enter the rental market.
To clarify, if you're considering your first Section 8 rental in ZIP 52536, the FMR of $920 means that you can charge up to this amount per month for a unit. However, the actual rent paid by the tenant will be based on their income, typically around 30% of their monthly adjusted gross income, with the rest covered by the housing assistance payment. For example, if a tenant's portion is $526, the government would cover the remaining $394 to meet the $920 FMR.
Before proceeding with a Section 8 rental, verify that your property meets all the necessary HUD requirements for quality and safety. This includes passing an inspection to ensure it complies with the Housing Quality Standards (HQS), which are designed to protect the health and safety of tenants. Once your property is approved, you can confidently list it as a Section 8 rental, knowing that you'll receive a stable and reliable income stream that aligns with the $920 FMR.
This investment strategy leverages the existing demand for affordable housing while providing a consistent rental income. Given the 13.5% renter share, there is a good chance of finding qualified tenants who can benefit from the lower rent compared to the FMR, making it a practical choice for landlords and small-portfolio investors.
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.