Location: Ida County, IA | Metro: Sioux City, IA-NE-SD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,350 |
| 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 analysis of ZIP code 51016 in Ida County, Iowa reveals key insights for potential Section 8 landlords and small-portfolio investors. To determine if the rent math works, we compare the Fair Market Rent (FMR) set at $910 for the fiscal year 2024 against the market rent of $970 as reported by the Census ACS. The discrepancy indicates that landlords accepting Section 8 vouchers will receive slightly less than the market rate, suggesting that the rent math does not fully align with market expectations.
Regarding the affordability of acquisitions, the median home value in ZIP 51016 stands at $176,615. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts makes it difficult to assess the ease or difficulty of acquiring properties at a reasonable cost. Investors should proceed with caution, as they must rely on other local real estate indicators to gauge property pricing trends.
Tenant demand is a critical factor for any rental property investment. ZIP 51016 has a total population of 1,080, with 19.1% of residents being renters. This relatively low renter share suggests limited demand for rental units, which could pose challenges for landlords seeking to fill vacancies.
In conclusion, while the median home value in ZIP 51016 offers a potentially affordable entry point for property acquisition, the mismatch between FMR and market rent, along with the modest renter share, points to a challenging environment for Section 8 landlords. The slightly lower rent reimbursement compared to market rates and the limited number of potential tenants may result in thinner profit margins and higher vacancy risks. Therefore, prospective investors should carefully consider these factors before entering the market 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.