Location: Sac County, IA | Metro: Buena Vista County, IA
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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $157,267 | 0.71% | D |
| 3BR | $1,380 | $206,681 | 0.67% | D |
| 4BR | $1,460 | $269,410 | 0.54% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 51002 in Alta, IA, must be carefully considered before making any decisions. Tenant turnover is a significant concern, as the market rent of $953 is notably lower than the Fair Market Rent (FMR) of $1,100 for FY 2026 in the metro area. This disparity suggests that tenants might be more likely to move when they find higher-paying jobs or alternative housing options, leading to frequent vacancies.
Vacancy exposure is another issue, as the days on market (DOM) is listed as N/A. This lack of data indicates an unreliable measure of how long it takes to fill a vacant unit, which can pose a challenge for landlords who need to ensure steady rental income. In addition, the typical home value in the area stands at $209,379, while the median income is $70,625. These figures suggest that there may be deferred maintenance exposure, as residents might struggle to afford necessary repairs and upkeep on their homes, potentially leading to increased maintenance costs for landlords.
Despite these challenges, the high renter share of 22.2% in Alta, IA, points to a strong demand for rental properties, including those utilizing Section 8 vouchers. A high concentration of renters often translates into greater competition for available units, which can benefit landlords by ensuring a pool of interested tenants even during times of high turnover or vacancy.
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.