Location: Sac County, IA | Metro: Sac County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 50535 are significant. Firstly, tenant turnover is a critical issue. With the market rent at $616, compared to the Federal Market Rent (FMR) of $920 for fiscal year 2026 in the metropolitan area, landlords can expect higher turnover rates due to the disparity between market rents and FMRs. This can lead to increased costs associated with finding new tenants and preparing the property for occupancy.
Vacancy exposure is another concern. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long a property might remain vacant between tenancies. A prolonged vacancy period can significantly impact cash flow and profitability, especially when considering the lower rental rates compared to the FMR.
Deferred maintenance is also a risk factor. Given the typical home value of $143,406 and a median income of $91,995, landlords must be prepared to invest in regular maintenance and repairs. Tenants who rely on government assistance may not have the financial means to cover such expenses, placing the burden squarely on the landlord's shoulders. This can result in unexpected costs that cut into profit margins.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 23.9%. High renter density typically correlates with higher demand for housing vouchers, making it easier for landlords to find tenants willing to use Section 8 vouchers. This ensures a steady stream of qualified renters, reducing the likelihood of extended vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 50535 is moderate. While there are significant challenges, the high renter share provides a solid foundation for attracting tenants and maintaining occupancy levels.
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.