Location: Van Buren County, IA | Metro: Van Buren 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 | $1,160 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $175,662 | 0.55% | F |
| 3BR | $1,160 | $215,667 | 0.54% | F |
| 4BR | $1,550 | $295,242 | 0.52% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 52565 (Keosauqua, IA) for Section 8 investment, follow this decision tree:
1) Does FMR $970 (metro FY 2026) clear debt service on a $200,625 property?
Yes: The Fair Market Rent (FMR) of $970 is sufficient to cover the debt service on a property valued at $200,625. Assuming a typical mortgage rate and term, the monthly payment would be less than the FMR, making the property financially viable for a Section 8 tenant.
No: The FMR of $970 does not clear the debt service on a $200,625 property. This means that the rental income from a Section 8 tenant will not be enough to cover the mortgage payments, leading to financial losses. Do not invest in this area for Section 8 purposes.
It depends: If your cost basis is lower than $200,625 or you can secure a more favorable financing arrangement, the FMR might still cover the debt service. However, based on the given property value, the answer is likely "No."
2) Is market rent $527 (Census ACS) above, at, or below FMR?
Above: The market rent of $527 is significantly below the FMR of $970. This suggests that there is an opportunity to capture additional rent from non-Section 8 tenants, but also indicates that the local rental market is less competitive compared to the federal guidelines.
At: This scenario does not apply since the market rent is below the FMR.
Below: The market rent of $527 is below the FMR of $970. While this means that a Section 8 tenant would pay a higher rent than the market average, it also suggests that the area has a low demand for rental properties, which could affect the overall occupancy rates and profitability.
3) Are 15.7% renters + N/A-day DOM enough demand?
Enough demand: If the 15.7% of the population renting and the unknown days on market (DOM) indicate a stable and growing rental market, then there is enough demand. However, without specific DOM data, this cannot be conclusively determined.
Not enough demand: With only 15.7% of the population renting and unknown DOM figures, there is insufficient data to confirm a strong demand for rental properties. This could lead to difficulty in finding tenants and maintaining occupancy rates.
It depends: Given the limited data, the demand for rental properties in Keosauqua, IA, is uncertain. A deeper analysis of local real estate trends, including DOM for rental properties, would be necessary to make a definitive judgment.
In conclusion, based on the provided data, the decision to invest in ZIP 52565 for Section 8 purposes hinges on whether the FMR covers your debt service and the overall demand for rental properties. Without a clear positive on both fronts, it is recommended to proceed with caution or seek additional information.
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.