Location: Sac County, IA | Metro: Buena Vista County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50540 within the Sac County, IA metro area reveals several key points that are crucial for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. However, the current market rent as reported by the Census ACS is significantly lower at $547. This disparity indicates that landlords may struggle to achieve rents at the FMR level, suggesting that the rent math does not currently align favorably with market conditions.
Regarding the affordability of acquisition, the median home value stands at $109,090, which is relatively low compared to many other areas. Unfortunately, the data on days on market (DOM) and the percentage of homes requiring price cuts is not available, making it difficult to assess the ease or difficulty of acquiring properties. Despite this lack of detail, the low median home value could still present opportunities for cost-effective investments.
The third question concerns tenant demand. With a total population of 998, 27.1% of residents are renters. This means that approximately 271 individuals are actively seeking rental housing, providing a baseline demand for rental properties. However, the small population size limits the potential for significant tenant demand growth.
In summary, while the acquisition cost appears to be affordable with a median home value of $109,090, the rent math is unfavorable due to the substantial gap between the FMR of $920 and the actual market rent of $547. Tenant demand exists but is limited by the small population size. Investors should proceed with caution, considering the potential for lower-than-desired rental income and the restricted growth in tenant numbers. The area's low median home value might offset these challenges, but the overall economic environment must support higher rents for profitability.
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.