Location: Lee County, IA | Metro: Lee County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
A decision tree for evaluating ZIP code 52619 for Section 8 investments hinges on three key factors: Fair Market Rent (FMR), market rent comparison, and demand metrics.
1) Does FMR of $930 cover debt service on a property valued at $184,766?
No: The FMR of $930 does not sufficiently cover the debt service for a property priced at $184,766. To calculate if the FMR clears debt service, you would need to know the specific loan terms, including interest rate and amortization period. However, given that the average monthly mortgage payment for a property of this value could be significantly higher than $930, it's unlikely that FMR alone will be enough to ensure profitability.
It Depends: If the landlord has a low-interest loan or the property is paid off, then the FMR might be sufficient. But generally, for a financed property, the answer is no.
2) Is market rent above, at, or below FMR?
N/A: There is insufficient data to determine the relationship between market rent and FMR in ZIP 52619. This lack of information makes it difficult to assess whether the property can command a premium over the FMR or if it will struggle to attract tenants willing to pay the FMR.
3) Are 5.6% renters and N/A-day Days on Market (DOM) enough demand?
No: With only 5.6% of the population renting, demand for rental properties is relatively low. Additionally, the lack of data on DOM suggests that either there is limited activity in the rental market or the available data is incomplete, both of which indicate a less favorable investment climate.
It Depends: If the landlord is targeting a niche market where Section 8 vouchers are commonly used, or if the area has other attractive features that draw in renters despite the low percentage, then demand might still be sufficient. However, without knowing the DOM, it's hard to gauge how quickly units might be filled.
In conclusion, ZIP 52619 presents challenges for Section 8 investments due to the low FMR relative to property values and limited rental demand. The absence of market rent data further complicates the decision-making process. Landlords should proceed with caution and consider alternative strategies or areas before committing to this ZIP code.
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.