Location: Appanoose County, IA | Metro: Appanoose 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 | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $710 | $58,822 | 1.21% | A |
| 2BR | $930 | $79,656 | 1.17% | B |
| 3BR | $1,110 | $164,343 | 0.68% | D |
| 4BR | $1,280 | $187,469 | 0.68% | D |
| 5BR | $1,485 | $192,137 | 0.77% | D |
U.S. Census Bureau data (2024)
ZIP 52544, located in Appanoose County, IA metro, fits well into a Section 8 portfolio strategy as a cash-flow anchor. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920, while the current market rent stands at $785. This creates a positive spread of $135 per unit, ensuring that landlords can maintain steady cash flows even when dealing with tenants whose rents are subsidized through the Section 8 program.
The median home value in ZIP 52544 is $101,066, which indicates that the housing stock in this area is relatively affordable. This affordability factor contributes to the stability of the cash flow anchor role because it means that the cost basis for acquiring properties is low, thereby increasing the potential profitability of each unit when rented out at the higher FMR rate.
While ZIP 52544 has a 0.2% price-cut share and an N/A-day days on market (DOM), these figures suggest limited volatility in pricing and a stable market environment. However, these characteristics do not make it a strong candidate for an appreciation play since property values are not expected to rise significantly over the short term.
The renter share in ZIP 52544 is 37.3%, with a median income of $50,572. These numbers indicate a moderate level of demand for rental properties, but they do not point towards high appreciation potential. Instead, they support the idea that ZIP 52544 can serve as a reliable cash-flow anchor due to the consistent demand for affordable housing and the predictable nature of the rental market.
In conclusion, ZIP 52544 should be considered as a cash-flow anchor within a Section 8 portfolio strategy. The positive spread between the FMR and market rent, combined with the low median home value, ensures that landlords can generate stable and predictable cash flows from their investments. This makes ZIP 52544 particularly attractive for small-portfolio investors looking to secure long-term financial stability.
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.