Location: Jefferson County, IA | Metro: Jefferson County, IA
| 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 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 52557 presents some challenges due to the lack of complete data. However, we can still provide a general overview based on the available information.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 52557, as per the FY 2026 metro data, is set at an annualized rate of $1,090. This figure represents the maximum amount that a landlord could receive through the Section 8 program for a 2-bedroom unit. Without the median home value, it's impossible to calculate a precise cap rate; however, we can infer that the gross yield would be relatively low, especially if compared to typical market conditions.
In terms of market rent, the data indicates that it is not available. This absence makes it difficult to compare the potential gross yields between participating in the Section 8 program and renting at market rates. Typically, market rents would be higher than the FMR, leading to a potentially better gross yield for landlords not relying on Section 8 subsidies.
Given the incomplete data regarding renter density and days on market (DOM), it's challenging to determine which scenario is more realistic. However, the implication is that landlords might find the gross yield from the Section 8 program insufficient when compared to what they could potentially earn from market rents, assuming market rents are indeed higher. The decision to participate in Section 8 should therefore be weighed against the potential for securing higher-paying tenants outside of the program.
To summarize, while the exact cap rate cannot be calculated without the median home value, the annualized FMR of $1,090 for a 2-bedroom unit suggests a lower gross yield compared to what could be achieved with market rents, once those figures become available. Landlords should consider these factors carefully when deciding whether to accept Section 8 tenants or pursue other rental opportunities.
Data Sources: FMR data from HUD (2027). 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.