Location: Jefferson 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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $218,509 | 0.71% | D |
U.S. Census Bureau data (2024)
The ZIP code 52635 stands out within its county due to a unique blend of demographic characteristics and housing economics that present both opportunities and challenges for landlords and small-portfolio investors. With a population of 890 residents, where 27.9% rent their homes, this area has a significant but not overwhelming rental market presence. The median income of $76,250 indicates a middle-class community, while the median home value of $203,013 suggests a stable residential real estate market.
Central to the discussion of Section 8 investments in ZIP 52635 is the analysis of voucher economics. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,270, whereas the current market rent, based on Census American Community Survey (ACS) data, is $1,014. This gap presents a scenario where landlords who accept Section 8 vouchers can potentially charge above-market rents, thus maximizing their investment returns. However, it also implies that there could be a competitive advantage for those who do not rely solely on voucher tenants, as they might attract higher-paying market-rate renters.
The data signature of ZIP 52635 reads as stable, with a relatively low population count and a moderate percentage of renters. The median income and home values suggest a balanced economy where residents can afford homeownership, but a portion still relies on rentals, including subsidized housing options like Section 8. This stability supports long-term investment strategies and provides predictability for rental income and property values. For landlords and investors, the decision to participate in the Section 8 program should be informed by an understanding of the local market dynamics and the potential for above-market rents through the voucher system.
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.