Location: Muscatine 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 | $780 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $182,973 | 0.69% | D |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 52739 comes with several risks that landlords must be aware of. Tenant turnover is a significant concern, as the market rent stands at $962, which is below the Fair Market Rent (FMR) of $1,020 for the fiscal year 2026 in the metropolitan area. This difference can lead to higher turnover rates, since tenants might prefer units that match the FMR. High turnover can strain resources and reduce profitability.
Vacancy exposure is another issue, given that the days on market (DOM) for vacant properties is not available. This lack of data makes it difficult to predict how long a property might remain unoccupied, increasing financial uncertainty. Landlords should prepare for potential periods of vacancy and the associated loss of rental income.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $155,254 and a median income of $74,375, many residents may struggle to afford significant maintenance costs. Landlords should budget for regular upkeep and potential major repairs, as the financial burden of these expenses can fall heavily on the property owner.
However, these risks are offset by the high renter density in the area. The 38.0% renter share suggests a robust demand for rental properties, including those accepting Section 8 vouchers. This high concentration of renters typically translates into a greater number of voucher holders looking for housing, providing a stable pool of potential tenants.
In conclusion, the risks associated with investing in Section 8 properties in ZIP code 52739 are moderate. While there are concerns regarding tenant turnover, vacancy exposure, and deferred maintenance, the high renter share offers a counterbalance that supports a steady demand for affordable housing options.
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.