Location: Lee 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 | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,810 | $273,589 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 52658 represents a small, predominantly homeowner-driven community with a total population of 927 individuals. Only 10.9% of the residents are renters, indicating a primarily owner-occupied environment. The median household income stands at $107,679, reflecting a relatively affluent area. The median home value is $247,308, which suggests a moderate housing market where homes are valued but not excessively so.
From an investment perspective, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,330. However, the market rent data for ZIP 52658 is not available, making it challenging to compare the FMR against local rental prices directly. Given the low percentage of renters, any Section 8 investments here would likely cater to a niche market.
Considering these factors, ZIP 52658 may not be ideal for hands-off voucher operators due to the limited number of potential tenants. The scarcity of renters means that finding qualified Section 8 tenants could be more time-consuming and less profitable compared to areas with higher rental rates and larger tenant pools. On the other hand, for hands-on value-add buyers, there could be opportunities to improve and manage properties effectively, especially if the goal is to attract the small but potentially growing number of renters in this otherwise owner-dominated community.
Investors looking to operate in ZIP 52658 should focus on understanding the local demand for rentals and the specifics of the Section 8 program in this area. While the FMR provides a benchmark, the lack of direct market rent data underscores the need for detailed local research before committing to any investment strategy.
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.