Location: Davis County, IA | Metro: Appanoose 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 | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $127,458 | 0.74% | D |
| 3BR | $1,130 | $161,592 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 52572, which includes Moulton, IA, Appanoose County, Davis County, IA metro, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $920 for fiscal year 2026, while the Census American Community Survey (ACS) reports a market rent of $732. This indicates that voucher tenants can cashflow comfortably at the HUD FMR rate.
To understand the potential returns better, consider the median home value in the area, which stands at $127,578. Using this figure, we can derive a rent-to-price ratio. Assuming a typical mortgage payment of $732, this would equate to an annual cost of roughly $8,784. The median home value suggests that renting out a property at the HUD FMR of $920 per month could yield an annual rental income of approximately $11,040. This translates into a rent-to-price ratio of about 0.086, indicating that rental income represents 8.6% of the property's value annually. This is a healthy ratio that supports long-term investment viability.
Note that the median days on market (DOM) and percentage of price cuts are not applicable (N/A) in this context, as they pertain more directly to the buying side of the market. However, the low market rent compared to the HUD FMR suggests a stable and predictable rental environment, which is beneficial for both cashflow and long-term investment stability.
The strongest investor angle in this market is stability. The significant gap between the HUD FMR and the actual market rent ensures a consistent source of income for landlords, especially when considering the low median home values and the corresponding manageable costs of ownership.
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.