Location: Henry 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 | $680 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $138,467 | 0.71% | D |
| 3BR | $1,290 | $200,975 | 0.64% | D |
| 4BR | $1,300 | $225,989 | 0.58% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 52645, which encompasses New London, Iowa, stands at $79,327. This figure places significant constraints on the rental budget of an average household. At the market rate of $849 per month, as reported by the Census Bureau's American Community Survey (ACS), it becomes challenging for residents to find affordable housing options without financial strain.
To put this into perspective, the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026 is $970. This means that the market rate already exceeds the median household's ability to pay comfortably, and the FMR is even higher. The discrepancy between the median income and both the market rate and FMR highlights a substantial affordability gap for renters in this area.
With only 13.0% of the 3,503 population being renters, the competition among landlords is relatively low. However, the limited number of renters means that landlords must carefully consider their pricing and tenant selection strategies to ensure steady occupancy and profitability.
The takeaway for landlords is clear: focusing on tenants who receive Section 8 vouchers can be a strategic advantage. While the voucher payment standard of $970 might seem lower than market rates, it provides a guaranteed source of income and helps attract tenants who are otherwise unable to afford the local housing costs. Landlords should weigh the benefits of voucher stability against the potential for slightly higher cash payments from non-voucher tenants, considering the overall demand and the financial capabilities of the local renter population.
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.