Location: Muscatine County, IA | Metro: Cedar 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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $304,885 | 0.41% | F |
U.S. Census Bureau data (2024)
Skeptical investors looking into ZIP 52760 might have several concerns regarding the feasibility of investing in properties within this area. Let's address these concerns with the available data.
Objection 1: Will FMR $960 (metro FY 2026) cover the mortgage on a $268,125 home?
The Fair Market Rent (FMR) for ZIP 52760 in fiscal year 2026 is set at $960. To determine if this amount will sufficiently cover the mortgage on a home priced at $268,125, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly payment on a $268,125 property would be approximately $1,345. This means that the FMR of $960 falls short by $385 per month. However, it's important to note that the FMR is intended to reflect the median rental cost for a two-bedroom apartment, which may not be representative of all housing types in the area. Some homes could command higher rents, potentially closing this gap.
Objection 2: Is there enough renter demand at 16.2%?
The rental demand in ZIP 52760 is indicated by the percentage of households that are renters, which stands at 16.2%. This figure suggests that there is a modest level of demand for rental properties in the area. While this percentage is lower than in many urban centers, it still represents a significant number of potential tenants. The challenge lies in ensuring that the rental units are well-targeted and competitively priced to attract these renters. Additionally, the data does not provide insights into the supply of rental properties, making it difficult to assess the balance between demand and supply. A thorough analysis of the local rental market, including vacancy rates and tenant preferences, would offer a clearer picture.
Objection 3: Will vouchers keep pace with N/A market rents?
The data provided does not include specific information about the availability or value of housing vouchers in ZIP 52760. Without this information, it's impossible to definitively state whether vouchers will cover the market rents. Generally, voucher programs aim to keep pace with market conditions, but this can vary widely depending on federal funding and local administration. Landlords should monitor local housing authority announcements and trends in voucher utilization to make informed decisions. It's also worth noting that voucher holders often face restrictions in finding suitable properties, which could affect their ability to secure housing in ZIP 52760.
In summary, while the data raises some concerns about covering mortgages and attracting sufficient renter demand, it also highlights areas where further investigation is necessary, particularly regarding the dynamics of the rental market and the specifics of housing voucher programs in ZIP 52760.
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.