Location: Wapello County, IA | Metro: Keokuk 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $134,886 | 0.72% | D |
| 3BR | $1,220 | $197,643 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 52561, which encompasses Fremont, Iowa, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $920 per month for fiscal year 2026, while the Census American Community Survey (ACS) indicates that the average market rent is $778 per month. This means there is a $142 difference, or approximately a 19.6% gap, between what landlords can charge under the Section 8 program and the typical rental price.
In this scenario, where the FMR exceeds the market rent, Fremont offers a compelling opportunity for landlords and small-portfolio investors. Voucher tenants provide a stable source of income, ensuring that units are rented at the higher FMR rate. Given that only 27.7% of residents are renters, there is less competition for rental properties, making it easier to attract voucher holders. Additionally, the median home value in Fremont is $175,111, suggesting that property values are relatively low compared to larger metropolitan areas, which can be advantageous for those looking to invest in real estate.
The median household income in Fremont is $76,058, indicating that many local residents might find it challenging to afford the higher rents associated with Section 8 vouchers. However, this does not necessarily mean that landlords will face difficulties in finding tenants; rather, it suggests that voucher tenants will likely be the primary occupants of units renting at the FMR rate. This situation makes the ZIP code a strong yield play, as landlords can secure rental income at above-market rates without the need to compete against numerous other rental properties.
Investors should also consider the implications of the FMR being higher than the market rent. While this discrepancy allows for better cash flow, it's essential to understand that maintaining properties to meet the standards required by the Section 8 program can incur additional costs. Nonetheless, the potential for increased returns, combined with the stability offered by government-backed rental assistance, positions Fremont as an attractive investment location for those interested in the Section 8 market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.