Location: Sioux City, IA | Metro: Sioux City, IA-NE-SD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 51007 reveals a unique balance between yield and stability that is neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone. The Federal Market Rent (FMR) for ZIP 51007 is set at $980 for fiscal year 2024, significantly lower than the market rent of $1,375. This difference suggests a potential for higher-than-average rental yields if properties can be leased out at market rates.
However, the median home value of $278,236 indicates that the area is not particularly undervalued, which might limit the appeal for quick flips. Additionally, the median household income of $117,125 provides a measure of financial stability among tenants, reducing the risk of default.
The percentage of renters in the area is only 2.2%, which is quite low and could imply a preference for homeownership. This factor might reduce the immediate attractiveness for rental investments but could also indicate a stable community where long-term rental strategies could thrive.
To summarize, ZIP 51007 leans towards a steady-cashflow zone due to its relatively high median household income and moderate home values. While there is potential for above-average rental yields, the low percentage of renters suggests that this is not a market ripe for quick flips. Instead, it offers a middle ground where careful, strategic investment can lead to reliable returns over time.
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.