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 | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $160,487 | 0.77% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 52646 stands at $62,500, which places significant constraints on households seeking to afford the market rate rent of $850 per month. This rate represents a substantial portion of the average household's income, making it challenging for residents to find suitable housing without financial strain.
To put this into perspective, the Federal Market Rent (FMR) for the area is set at $980, which is higher than the current market rate. However, the FMR serves as a benchmark for the Housing Choice Voucher program, commonly known as Section 8. The discrepancy between the FMR and the actual market rate suggests that voucher holders might struggle to find properties that accept their vouchers within this ZIP code.
With only 7.8% of the 255 population being renters, the competition among landlords is relatively low. This means that landlords have fewer potential tenants to choose from, but it also indicates that there is less pressure to lower rents to attract tenants. However, the affordability gap poses a challenge. At $850, a typical rental unit already consumes a large share of a household's income, and increasing the rent to match the FMR would make it even harder for many residents to pay.
The takeaway for landlords considering whether to accept voucher tenants or focus on cash-paying tenants is clear. Accepting vouchers could provide a steady stream of rental income, though at a rate slightly below the market. On the other hand, focusing on cash-paying tenants might allow for higher rents but comes with the risk of reduced demand due to the high cost relative to the local median income. Landlords should weigh these factors carefully and consider offering units at a price point closer to the median income to attract both types of tenants and ensure occupancy rates remain stable.
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.