Location: Wayne County, IA | Metro: Wayne County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 52583 reveals a significant difference between the Federal Market Rent (FMR) and the actual market rent, impacting potential gross yields for real estate investments.
Based on the data provided, the annualized Fair Market Rent for a two-bedroom apartment in ZIP 52583 for fiscal year 2026 is $940 per month. This translates to an annual income of $11,280. The median home value in this area is $214,919. Using these figures, the implied gross yield for a property rented under Section 8 guidelines would be approximately 5.25%. This calculation is derived by dividing the annual rental income ($11,280) by the median home value ($214,919).
In contrast, the market rent for a two-bedroom apartment in ZIP 52583, according to the Census ACS, is $1,104 per month. This amounts to an annual income of $13,248. When compared to the median home value, this scenario implies a gross yield of about 6.17%, calculated by dividing the annual market rent ($13,248) by the median home value ($214,919).
The gross yield comparison clearly shows that renting a property at market rates yields a higher return than renting it under Section 8 guidelines. However, the decision between the two should consider the local rental market conditions and tenant preferences. With a renter density of 21.3%, there is a notable portion of the population seeking rental housing, but the vacancy duration (DOM) is not specified, making it challenging to assess how quickly properties can be filled at either rate.
Given the data, the market rent scenario offers a more substantial gross yield, suggesting greater financial benefits for landlords and small-portfolio investors. Yet, the stability and security offered by Section 8 tenancy might outweigh the lower gross yield for some investors, especially considering the guaranteed rent payments and the reduced risk of vacancy.
To summarize, the gross yield for a Section 8 property in ZIP 52583 is roughly 5.25%, while renting at market rates could provide a gross yield of around 6.17%. These figures provide a clear basis for investment decisions, balancing financial returns with the stability of long-term tenancy.
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.