Location: Ida County, IA | Metro: Sioux City, IA-NE-SD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The ZIP code 51006 is situated in a rural setting, primarily encompassing parts of the city of Iowa City, IA, and surrounding areas. With a population of 1,287, it is a small community where nearly one-third of residents are renters, indicating a modest but present demand for rental properties. The median household income stands at $75,625, which is relatively high compared to the median home value of $118,026, suggesting that many residents can afford homeownership, but a significant portion still relies on renting.
In terms of rent economics, the Fair Market Rent (FMR) for ZIP 51006 in fiscal year 2024 is set at $910, while the average market rent based on Census ACS data is $593. This substantial gap between FMR and actual market rents presents an opportunity for landlords and small-portfolio investors. The higher FMR rate means that Section 8 vouchers can cover a larger portion of the rent, making these properties attractive to tenants who qualify for assistance.
Given the characteristics of ZIP 51006, it is well-suited for both hands-off voucher operators and hands-on value-add buyers. For those preferring a hands-off approach, the high FMR relative to market rent ensures a steady stream of qualified tenants without the need for extensive property management. Meanwhile, value-add buyers could focus on upgrading the quality of existing rental units to command rents closer to the FMR, thereby increasing profitability and potentially attracting non-voucher tenants as well.
To summarize, ZIP 51006 offers a balanced environment for real estate investment, particularly in the context of Section 8 properties. The combination of a reasonable number of renters, favorable income levels, and a significant difference between FMR and market rent makes it a viable option for investors looking to capitalize on government-assisted housing programs.
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.