Location: Lee County, IA | Metro: Lee 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 | $680 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $750 | $40,957 | 1.83% | A+ |
| 2BR | $980 | $68,423 | 1.43% | A |
| 3BR | $1,300 | $118,388 | 1.1% | B |
| 4BR | $1,450 | $143,689 | 1.01% | B |
| 5BR | $1,682 | $232,596 | 0.72% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 52632, located in Keokuk, Iowa, hinges on its financial metrics, particularly when considering it against the backdrop of yield and stability for real estate investments. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $950, while the local market rent stands at $863. This indicates a slight premium for federally subsidized housing units, suggesting a modest opportunity for higher rental yields compared to the general market.
However, the median home value in the area is significantly lower at $81,040. This figure is important for assessing potential capital appreciation and resale value but does not directly impact rental yield. For stability, we see that approximately 32.3% of residents are renters, which provides a baseline for the demand for rental properties. The lack of data on the average number of days on market (DOM) suggests that there might be limited insights into how quickly properties can be leased, potentially indicating a less competitive market.
The median household income in ZIP 52632 is $56,653. This metric is crucial for understanding the economic stability of the tenant pool and the ability of residents to afford higher rents. Given the relatively low income levels, there is a risk that tenants might struggle to pay market rates, especially if they are not benefiting from subsidies.
To determine whether this is a high-yield/low-stability market or a steady-cashflow zone, we must consider these factors collectively. The modest difference between the FMR and market rent suggests that the area is not experiencing a significant premium for federally subsidized housing, which would indicate a high-yield environment. Instead, the figures suggest a scenario where the yield is slightly above average due to the FMR but balanced by the lower median home values and income levels, leading to a moderate level of stability.
Therefore, ZIP 52632 is best classified as a market that falls somewhere in between a high-yield/low-stability environment and a steady-cashflow zone. It offers opportunities for rental yields that are above the local market average but lacks the robust stability often found in areas with higher incomes and more consistent rental markets.
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.