Location: Davenport-Moline-Rock Island, 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 | $840 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $153,523 | 0.73% | D |
| 3BR | $1,480 | $221,579 | 0.67% | D |
| 4BR | $1,800 | $292,083 | 0.62% | D |
| 5BR | $2,088 | $338,044 | 0.62% | D |
U.S. Census Bureau data (2024)
Davenport, Iowa, located within ZIP code 52806, is best suited as an appreciation play within a Section 8 portfolio strategy. The area's rental market dynamics and property values indicate potential for growth over time.
The Fair Market Rent (FMR) for ZIP 52806 in fiscal year 2024 is set at $960. This is lower than the current market rent of $1,126, which suggests that properties in this area are currently undervalued relative to what tenants can afford. Additionally, the median home value in the area is $214,726, providing a solid foundation for investment.
A key indicator supporting Davenport as an appreciation play is the low 0.2% price-cut share. This figure shows that few properties are being sold at a discount, suggesting a stable and potentially rising market. Furthermore, the days on market (DOM) average of 18 days indicates that homes are selling quickly, a sign of strong demand.
The median income in ZIP 52806 is $74,297, which is relatively high compared to the cost of living and housing expenses. This economic strength supports the ability of residents to maintain steady rental payments and contributes to the overall stability of the local real estate market.
While the 28.2% renter share suggests a diverse tenant base, the primary focus should be on the appreciation potential. The quick sale times and low price-cut share point to a market where properties will likely increase in value over time, making Davenport a strategic choice for investors looking to build long-term wealth through property appreciation.
In conclusion, Davenport, Iowa, in ZIP code 52806, offers a compelling opportunity for appreciation within a Section 8 portfolio. With a median home value of $214,726, a market rent of $1,126, and FMR at $960, the area provides a solid base for investment that is poised for growth.
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.