Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61274 reveals a unique blend of yield and stability that is neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone, but rather an area that presents opportunities for both types of investment strategies.
Yield: The Fair Market Rent (FMR) for ZIP 61274 in fiscal year 2024 is set at $970. This figure indicates a moderate rental yield potential. With no specific market rent or home value data available, we must rely on the FMR as a benchmark for assessing the rental income prospects. The FMR suggests that properties in this area can be rented out at a price point that is competitive and likely to attract tenants.
Stability: The stability of the market in ZIP 61274 is influenced by several factors. Firstly, only 12.2% of residents are renters, which points towards a relatively stable tenant base, albeit smaller in size. Secondly, the median household income of $72,000 suggests that tenants have the financial capacity to meet their rental obligations. However, without daily days-on-market (DOM) data, it's challenging to fully assess the turnover rate and the ease of finding new tenants.
The combination of these factors leads to a conclusion that ZIP 61274 offers a balanced opportunity. It is not a high-risk, high-reward market due to the lower percentage of renters and the absence of speculative pricing trends. Instead, it represents a niche where landlords and small-portfolio investors can achieve reasonable yields without the volatility associated with highly speculative markets. The $970 FMR provides a solid basis for rental income, while the $72,000 median income supports the likelihood of timely rent payments.
To further refine investment decisions, focus on properties that align with the FMR and target the stable income demographic. This approach will likely result in a steady cash flow with minimal risk, making it suitable for investors seeking reliable returns over time.
Data Sources: FMR data from HUD (2027). 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.