Location: Clinton County, IA | Metro: Clinton 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 | $1,190 |
| 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 | $1,190 | $275,219 | 0.43% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 52750 might have several concerns regarding the feasibility of investing in properties there, particularly in relation to Section 8 housing. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $950 (for the metro area in fiscal year 2026) cover the mortgage on a $287,516 home?
The FMR of $950 is a critical figure when considering whether the rental income will be sufficient to cover the mortgage payments on a property valued at $287,516. According to recent data, the average monthly mortgage payment for a median-priced home in this ZIP code could range widely depending on interest rates and loan terms. However, assuming a typical 30-year fixed-rate mortgage at an average rate, the monthly payment would likely exceed $950, indicating that FMR alone might not fully cover the mortgage. This suggests that landlords need to consider additional sources of income or prepare for potential subsidies to make ends meet.
Objection 2: Is there enough renter demand at 9.2%?
The 9.2% represents the percentage of households that are renters in ZIP 52750. While this figure is relatively low compared to some metropolitan areas, it does not provide a complete picture of the rental market's health. To accurately assess the demand, we would need to know the total number of households and the vacancy rate. The current data indicates that there is a niche for rental properties, but the overall demand appears limited. Landlords should look into local economic indicators and job growth trends to better understand the potential for increased rental demand in the future.
Objection 3: Will vouchers keep pace with $838 market rents?
The market rent of $838 is slightly below the FMR, which could be seen as a positive sign for landlords participating in the Section 8 program. However, the question remains whether the voucher amounts will adjust to match the increasing market rents. Historically, voucher amounts have struggled to keep up with rising rents, especially in rapidly growing markets. For ZIP 52750, there is no specific data provided on how well the vouchers align with current market rents. It is advisable for investors to monitor local HUD announcements and budget adjustments to anticipate any changes in voucher coverage.
In conclusion, while ZIP 52750 presents opportunities for Section 8 investments, the data raises questions about the adequacy of FMR for covering mortgage costs, the level of renter demand, and the alignment of vouchers with market rents. Investors should proceed with caution and thorough research to ensure they can manage their investment effectively.
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.