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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $137,528 | 0.89% | C |
U.S. Census Bureau data (2024)
The ZIP code 52554 has a population of 1,078 individuals, with 12.6% being renters. This indicates that the area is primarily homeowner-dominated rather than a renter-heavy zone, suggesting that the demand for rental properties using Section 8 vouchers might be relatively low. However, it's important to consider the local economic conditions when assessing the potential for Section 8 tenants.
The median household income in ZIP 52554 is $55,769, which places the average market rent of $692 at approximately 12.4% of the median income. This percentage is calculated by dividing the rent by the annual income and multiplying by 100 (692 / 55769 * 12 = 12.4%). Given the federal fair market rent (FMR) for the metro area is set at $930 for FY 2026, the local market rent is below the FMR, indicating that landlords could potentially receive higher subsidies if they participate in the Section 8 program.
A landlord in ZIP 52554 can expect a tenant profile that includes individuals and families who rely on government assistance for housing. The typical tenant will likely have an income close to the median household income but may also include those with lower incomes who qualify for Section 8 vouchers. With the local market rent being significantly lower than the FMR, there is an opportunity for landlords to attract tenants who benefit from the voucher system, even though the overall number of renters is modest compared to the total population.
In summary, while ZIP 52554 is not heavily populated with renters, the lower-than-FMR market rent presents a favorable environment for landlords willing to accept Section 8 vouchers. These vouchers can help cover a larger portion of the rent relative to the tenant's income, ensuring steady occupancy and reliable payments.
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.