Location: Jefferson County, IA | Metro: Washington County, IA HUD Metro FMR Area
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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $750 | $103,397 | 0.73% | D |
| 2BR | $980 | $153,827 | 0.64% | D |
| 3BR | $1,290 | $199,064 | 0.65% | D |
| 4BR | $1,300 | $252,984 | 0.51% | F |
| 5BR | $1,508 | $312,282 | 0.48% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 52641, which encompasses Mount Pleasant, IA, and parts of Henry and Jefferson Counties, reveals several key insights. The HUD Fair Market Rent (FMR) for FY 2024 is set at $860, while the Census ACS reports a market rent of $834. This indicates that voucher tenants will generally cashflow at FMR levels, with a slight buffer of $26 per month. However, landlords should note that this margin is minimal and may be impacted by maintenance costs and other expenses.
To further contextualize these figures, consider the median home value in the area, which stands at $192,498. Using this figure, we can derive a rent-to-price ratio. Given an average annual rent of $10,008 (based on the Census ACS figure), the ratio is approximately 5.2%, suggesting that rental income represents a modest portion of the total property value. This ratio is indicative of a stable rental market but does not necessarily signal strong appreciation potential.
Regarding the days on market (DOM) and price-cutting trends, the data shows a median DOM of N/A and a price-cut share of 0.1%. These figures suggest that the housing market in ZIP 52641 is relatively stable, with few properties requiring significant price adjustments to sell. For investors, this stability means that the risk of overpaying for a property is low, and the likelihood of achieving a competitive resale price in the future is high.
In conclusion, the strongest angle for Section 8 investors in this region is likely to be stability. The consistent rent-to-price ratio and stable housing market conditions make it an attractive location for long-term investment with predictable returns. While cashflow margins are thin, the overall stability of the market provides a solid foundation for investors seeking reliable, long-term rental income.
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.