Location: Clinton County, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
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 | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $255,156 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 52745 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here are three common objections, addressed with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $990 for ZIP 52745 in fiscal year 2024 be sufficient to cover the mortgage on a home valued at $252,962?
The FMR of $990 per month needs to be analyzed against the mortgage costs. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly payment on a $252,962 home would be approximately $1,245. This calculation leaves a shortfall of around $255 per month between the FMR and the mortgage payment. To address this, consider the potential for tax benefits, property appreciation, and other income streams such as parking fees or laundry facilities that can help offset the difference.
Objection 2: Is there enough renter demand at 11.6%?
The 11.6% rental vacancy rate suggests that there is moderate demand for rental properties in ZIP 52745. A lower vacancy rate indicates higher demand, but 11.6% is not unusually high. In fact, it aligns with national averages, which often hover around 7%. However, the data does not provide a comprehensive picture of the local rental market dynamics. It's important to also look into the population growth trends, employment rates, and demographic shifts to better understand the long-term stability of demand.
Objection 3: Will vouchers keep pace with market rents of $940?
The FMR of $990 is slightly above the current market rent of $940, indicating that voucher holders could potentially afford homes at the market rate. However, the critical point here is whether the voucher amounts will increase to match future market rent hikes. The data does not specify the trend of voucher adjustments over time, but historically, the U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts annually based on the FMR. Investors should monitor these adjustments closely to ensure they remain competitive with market rents and continue to attract tenants.
In conclusion, while ZIP 52745 presents some challenges, particularly with the gap between FMR and mortgage payments, and the need for ongoing analysis of local market conditions and HUD voucher trends, the investment remains viable. The key is to balance the risks with strategic planning and to stay informed about any changes in policy or market conditions that could impact profitability.
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.