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 | $820 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $90,730 | 0.96% | C |
| 2BR | $1,100 | $138,705 | 0.79% | D |
| 3BR | $1,320 | $207,828 | 0.64% | D |
| 4BR | $1,630 | $285,780 | 0.57% | F |
| 5BR | $1,891 | $402,265 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP code 52761 in Muscatine, IA, are significant. First, consider the disparity between the market rent of $973 and the Fair Market Rent (FMR) of $1,080 for fiscal year 2026 in the metro area. This difference suggests that landlords might struggle with tenant turnover, as many voucher holders can only afford rents closer to the lower market rate. Second, the vacancy risk is notable due to the 23-day Days on Market (DOM), which indicates a relatively quick turnover but also exposes landlords to periods of non-payment during vacancies. Lastly, the deferred maintenance risk is considerable, given the typical home value of $183,305 and the median income of $62,098. These factors imply that homeowners may delay necessary repairs, potentially leading to higher maintenance costs for landlords.
However, these risks must be weighed against the high renter density in the area, with 28.3% of residents being renters. High renter density typically correlates with a greater demand for rental properties, including those participating in the Section 8 program. The concentration of renters increases the likelihood of finding tenants who are eager to secure housing, even if it means dealing with the constraints of the Section 8 program.
In summary, while there are several challenges, the strong demand for rentals in ZIP 52761 makes it a moderate risk for a first-time Section 8 landlord. The key to success will be managing tenant turnover effectively and preparing for occasional maintenance expenses that exceed typical expectations.
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.