Location: Louisa County, IA | Metro: Des Moines 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 | $700 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $165,318 | 0.75% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 52640 under the Section 8 program are significant and should be carefully considered. Tenant turnover is a critical issue, as the market rent of $806 is notably lower than the Fair Market Rent (FMR) of $1,040 for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants who qualify for Section 8 vouchers might find it challenging to afford market rents once their subsidy ends, leading to higher turnover rates.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which can make it difficult to predict how long properties might remain vacant between tenancies. This uncertainty can translate into lost rental income and increased management costs.
The deferred maintenance risk is also present. With a typical home value of $175,691 and a median income of $67,813, homeowners may struggle to keep up with maintenance expenses, potentially affecting property quality and tenant satisfaction over time.
However, these risks must be weighed against the favorable aspect of a high renter share. ZIP 52640 has a 13.7% renter share, indicating a dense population of renters who often rely on housing assistance programs like Section 8. This high density typically translates into greater demand for subsidized housing units, which can help mitigate the risk of vacancy and ensure steady occupancy.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 52640 supports a strong demand for Section 8 properties. For a first-time Section 8 landlord, the overall risk level is assessed as moderate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.