Location: Lee County, IA | Metro: Henry 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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $192,119 | 0.48% | F |
| 3BR | $1,230 | $254,187 | 0.48% | F |
| 4BR | $1,370 | $280,800 | 0.49% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 52656 in West Point, IA, reveals several key points that should be considered. The HUD Fair Market Rent (FMR) for the Lee County metro area for fiscal year 2026 is set at $920 per month. In contrast, the Census ACS data indicates an average market rent of $608 per month. This means that voucher tenants will cashflow significantly at the FMR rate, providing a substantial buffer against market fluctuations.
To derive the rent-to-price ratio, we use the median home value of $240,970. At the average market rent of $608, the annual rent is approximately $7,296, which equates to a rent-to-price ratio of about 3%. This ratio suggests that rental income alone would not cover the mortgage payment on a typical property in this area, indicating that homeownership is more attractive than renting from a purely financial standpoint.
Unfortunately, specific data regarding the median Days on Market (DOM) and the percentage of price cuts for rental properties in ZIP code 52656 was not found. However, given the significant difference between the HUD FMR and the market rent, it is likely that rental properties in this area do not require frequent price adjustments to attract tenants. The strong cashflow potential for Section 8 properties outweighs the need for such adjustments.
The strongest investor angle in ZIP code 52656 is cashflow. With the HUD FMR substantially higher than the market rent, investors can expect to generate positive cash flow from Section 8 properties, making this an attractive investment opportunity despite the lower rent-to-price ratio.
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.