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 | $1,210 |
| 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 |
|---|---|---|---|---|
| 2BR | $980 | $148,140 | 0.66% | D |
| 3BR | $1,210 | $206,223 | 0.59% | F |
| 4BR | $1,300 | $251,585 | 0.52% | F |
U.S. Census Bureau data (2024)
ZIP code 52654 in Iowa presents an interesting scenario for both renters and landlords. The median income in this area stands at $84,783, which is relatively high compared to the national average. However, when considering the market rate for rent, which is $833 according to the Census ACS, households in this ZIP code face a significant challenge in affording housing without financial assistance.
The Federal Market Rent (FMR) standard for voucher payments in ZIP 52654 for fiscal year 2024 is set at $860. This amount closely aligns with the market rate, indicating that those who receive vouchers have a slight advantage in terms of rental affordability. Given that only 18.2% of the 1,884 residents are renters, it suggests a smaller pool of potential tenants, which could intensify competition among landlords.
The affordability gap is evident when comparing the median income to the rent. A household earning $84,783 would likely find it challenging to allocate a substantial portion of their income towards rent, especially if they are also managing other expenses such as utilities, groceries, and healthcare. This situation means that landlords must consider the financial needs of their potential tenants carefully.
For landlords, the decision between accepting voucher payments versus relying on cash-paying tenants should be informed by the local rental market dynamics. While voucher recipients provide a steady stream of income guaranteed by the government, landlords may also benefit from cash-paying tenants who might offer higher rents or fewer administrative requirements. However, the tight alignment between the FMR and the market rate suggests that voucher tenants can still be a viable option, particularly given the limited number of renters in the area.
The takeaway for landlords is that understanding the financial landscape of ZIP 52654 is crucial. Accepting voucher payments at $860 can help attract tenants in a competitive market where many may struggle with the cost of living. Meanwhile, landlords should be prepared to offer competitive pricing or additional amenities to appeal to cash-paying tenants. Balancing these strategies will be key to maintaining occupancy rates and maximizing returns in this ZIP code.
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.