Location: Jefferson County, IA | Metro: Jefferson 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 | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $99,694 | 0.84% | C |
| 2BR | $1,100 | $138,019 | 0.8% | D |
| 3BR | $1,310 | $203,315 | 0.64% | D |
| 4BR | $1,450 | $239,823 | 0.6% | D |
| 5BR | $1,682 | $346,440 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 52556 encompasses a part of Fairfield, IA, characterized by a moderate-sized population of 11,448 residents. The area has a notable rental market, with 36.4% of the population being renters. This indicates a steady demand for rental properties. The median household income stands at $59,243, reflecting a middle-class community where residents can afford decent housing but may still require assistance. The median home value is $180,914, suggesting that homeownership is attainable for many, yet the rental market remains significant.
The economic landscape of the rental sector is particularly interesting. According to the Census ACS, the market rent in ZIP 52556 is $878. However, the Fair Market Rent (FMR), which is set by HUD for the metro area for fiscal year 2026, is $1,090. This discrepancy means that landlords participating in the Section 8 program can expect higher rent payments than what the local market typically offers, potentially leading to increased profitability.
Given these figures, ZIP 52556 presents a viable opportunity for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed higher rent payment through the Section 8 program ensures stable cash flow without the need for active property management. On the other hand, value-add buyers could leverage the gap between the FMR and market rent to improve properties and charge closer to the FMR, thereby increasing their returns while still providing affordable housing options.
In summary, ZIP 52556 in Fairfield, IA, offers a balanced environment with a strong rental demand and a supportive Section 8 program. Investors can choose a strategy that aligns with their goals, whether it's passive income generation or active property enhancement.
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.