Location: Plymouth County, IA | Metro: Sioux City, IA-NE-SD 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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $179,478 | 0.58% | F |
| 3BR | $1,310 | $240,819 | 0.54% | F |
| 4BR | $1,390 | $294,613 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 51001 in Akron, IA, are significant. Firstly, tenant turnover poses a considerable challenge. The market rent stands at $716, which is notably lower than the Fair Market Rent (FMR) of $910 for fiscal year 2024. This disparity can lead to frequent changes in tenants, who might be inclined to move to areas where their vouchers cover a higher percentage of the total rent. Secondly, vacancy exposure is a concern, as the average number of days on the market (DOM) is not available. This lack of data makes it difficult to predict how long properties might remain vacant between tenancies, increasing financial uncertainty for landlords.
The risk of deferred maintenance is also present. With a typical home value of $230,432 and a median household income of $75,404, many residents may struggle to afford necessary repairs and upgrades. This financial strain can result in properties deteriorating over time, leading to increased maintenance costs for landlords. However, these risks must be weighed against the high proportion of renters in the area, which stands at 23.9%. High renter density generally indicates a robust demand for rental housing, including units that accept Section 8 vouchers. This demand can help ensure a steady stream of tenants, mitigating some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.