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 | $181,797 | 0.57% | F |
| 3BR | $1,310 | $254,850 | 0.51% | F |
| 4BR | $1,390 | $306,288 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $910 for ZIP 51028 (Kingsley, IA) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $248,446. To evaluate this, we must consider the typical mortgage payments in the area. According to recent data, the median family income in ZIP 51028 is approximately $50,000. This figure suggests that the average household can afford a mortgage payment based on standard lending criteria, which often allow for up to 30% of income to be spent on housing. At this rate, a monthly mortgage payment of around $1,250 would be reasonable, but it exceeds the FMR. Therefore, while the FMR does not fully cover the mortgage, it is still feasible to attract tenants willing to pay more, especially if the property is well-maintained and located in a desirable area.
The investor may also doubt the adequacy of renter demand, given the relatively low rental vacancy rate of 16.6%. However, a lower vacancy rate implies higher demand relative to supply. In ZIP 51028, the rental market is tight, indicating that there are sufficient tenants looking for accommodation. Although the vacancy rate is above the national average, it still reflects a market where landlords can find renters willing to occupy their properties.
A final concern could be whether housing vouchers will keep pace with market rents of $785. The data available does not provide a direct comparison between voucher amounts and market rents for ZIP 51028. However, the U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts annually to reflect changes in the cost of living and market conditions. It's prudent for landlords to stay informed about these adjustments and to understand that while vouchers may not always cover the full market rent, they can still offer a reliable source of income. Additionally, landlords can negotiate with tenants to cover any shortfall, making the use of vouchers a viable option in this ZIP code.
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.