Location: Muscatine County, IA | Metro: Iowa City, IA HUD Metro FMR Area
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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $212,295 | 0.67% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 52766 on the yield and stability axes reveals a market that offers both opportunities and challenges for landlords and small-portfolio investors. The Federal Market Rent (FMR) for ZIP 52766 in fiscal year 2024 is set at $1,080, while the average market rent stands at $966. Given the home value of $200,469, the potential rental yield appears to be favorable, especially when considering the FMR is higher than the market rent. This suggests that properties could potentially generate above-average rental income.
On the stability axis, ZIP 52766 exhibits mixed signals. With 21.3% of residents being renters, the market has a notable but not overwhelming rental presence. The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties are rented out. However, the median household income of $61,865 provides insight into the financial capacity of the local population, indicating a moderate level of economic stability.
Given these figures, ZIP 52766 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle-ground scenario where the potential for higher rental yields exists, but the market stability is somewhat uncertain due to limited data on rental turnover rates. Investors should focus on areas with strong rental demand and consider the economic conditions that support a stable tenant base.
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.