Location: Louisa County, IA | Metro: Louisa 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $165,588 | 0.68% | D |
| 4BR | $1,290 | $307,160 | 0.42% | F |
U.S. Census Bureau data (2024)
ZIP 52653, located in Louisa County, Iowa, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930, while the current market rent stands at $729. This creates a significant spread of $201 per month, indicating that properties in this ZIP code can be rented out at higher rates through the Section 8 program compared to the local market. With a median home value of $161,918, the cost of acquiring rental properties remains relatively low, enhancing the potential for positive cash flow.
The low median income of $83,525 suggests that many residents qualify for the Section 8 housing assistance program, which helps cover the difference between the market rent and the amount a tenant can afford. This ensures a stable tenant pool and consistent rental income, making ZIP 52653 a reliable choice for generating steady cash flow.
While the 0.1% price-cut share and N/A-day days on market (DOM) indicate a competitive market, these factors do not significantly impact the decision to include ZIP 52653 as a cash-flow anchor. The primary focus should remain on leveraging the FMR to achieve better rental yields than the local market rate.
A portfolio strategy that includes ZIP 52653 would benefit from the combination of low property acquisition costs and higher guaranteed rental income through the Section 8 program. This makes it an ideal location for landlords and small-portfolio investors looking to secure predictable cash flow.
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.