Location: Wapello 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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $100,761 | 1.04% | B |
| 3BR | $1,310 | $163,510 | 0.8% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 52563 in Wapello County, Iowa reveals key insights for landlords and small-portfolio investors. First, let's examine if the rent math works. The Fair Market Rent (FMR) for the area, set at $1,020 for the fiscal year 2026, is significantly higher than the current market rent of $675, based on Census ACS data. This discrepancy suggests that landlords may face challenges in justifying higher rents to tenants without offering substantial improvements or amenities that justify the price increase.
Moving on to acquisition affordability, the median home value in ZIP 52563 stands at $170,035. However, with the lack of data on days on market (DOM) and the percentage of homes needing price cuts, it's difficult to assess the ease of acquiring properties. Despite this, the relatively low median home value indicates that property acquisition could be financially feasible for investors looking to enter this market, especially given the current economic conditions.
Regarding tenant demand, the population of ZIP 52563 is 1,602, with 17.9% of residents being renters. This percentage translates to approximately 287 potential tenants. While the number is modest, it reflects a stable demand for rental properties within the area, suggesting that landlords can expect a steady stream of interested tenants.
In summary, while the rent math presents a challenge due to the significant gap between FMR and current market rents, the acquisition of properties appears to be affordable with the median home value being reasonably low. Tenant demand, although limited, is consistent enough to support rental investments. Landlords should focus on maintaining competitive rental rates and ensuring their properties meet the needs of the local market to succeed in ZIP 52563.
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.