Location: Van Buren County, IA | Metro: Henry 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $166,988 | 0.56% | F |
| 3BR | $1,120 | $190,831 | 0.59% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $920 for the metro area in fiscal year 2026, Bonaparte, IA (ZIP 52620) presents a clear rental opportunity. The market rent, according to the Census ACS, stands at $605, indicating a significant margin above the actual rents charged. This margin suggests that landlords can potentially increase their rental incomes without pricing themselves out of the market. The median home value in the area is $190,527, which is a reasonable investment point for small-portfolio investors looking to enter the real estate market. Given that 29.4% of the residents are renters, there is a substantial demand for rental properties, ensuring a steady stream of potential tenants. The median income of $79,327 provides insight into the financial capacity of the local population, supporting the feasibility of charging higher rents. Although the days on market (DOM) and the percentage of price-cut shares are not available, the other data points strongly suggest a robust rental market. Landlords and investors should take note of the FMR being set at $920, as it represents the maximum amount that can be charged for a Section 8 voucher in the area. With these numbers in mind, it's evident that the ZIP 52620 offers a favorable environment for those interested in Section 8 properties.
The disparity between the FMR and the current market rent indicates a prime opportunity for landlords to adjust their pricing strategies. The median income figure supports the ability of tenants to afford higher rents, while the renter share highlights the ongoing demand for rental housing. For investors, the median home value offers a benchmark for property acquisition costs, balancing the potential returns against the initial investment. In conclusion, the data paints a picture of a viable and profitable Section 8 market in Bonaparte, IA. The verdict on Section 8 properties in ZIP 52620 is positive, with strong potential for both rental income and long-term investment growth.
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.