Location: Sac County, IA | Metro: Buena Vista County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 50567 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $1,130, while the Census ACS reports the market rent at $776. This creates a gap of $354, or approximately 45.7%, which is substantial.
In this scenario, where the FMR exceeds the market rent, it makes ZIP 50567 an attractive area for landlords and small-portfolio investors looking to maximize their yields. The higher FMR means that voucher tenants can afford to pay closer to the $1,130 benchmark, which is significantly above the average market rent of $776. This allows property owners to achieve higher rental incomes without having to compete with the open-market rates, thus enhancing profitability.
The demographic context supports this analysis. With 36.2% of residents being renters and a median household income of $78,125, there is a strong demand for affordable housing. The absence of a reported median home value suggests that homeownership might be less prevalent, further indicating a reliance on rental properties.
Investors should take note of the potential benefits of accepting Section 8 vouchers in this ZIP code. Not only does it offer a stable tenant base, but it also provides an opportunity to earn rental income that is well above the local market rate. This is particularly valuable given the current economic conditions and the need for consistent cash flows.
To summarize, the $354 gap between FMR and market rent in ZIP 50567 represents a significant yield opportunity for landlords who accept Section 8 vouchers. This aligns with the local rental market dynamics and the financial situation of the majority of residents, making it a smart investment strategy in this area.
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.