Location: Sioux County, IA | Metro: Plymouth 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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $195,772 | 0.53% | F |
| 3BR | $1,330 | $260,962 | 0.51% | F |
| 4BR | $1,400 | $336,060 | 0.42% | F |
| 5BR | $1,624 | $454,599 | 0.36% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 51031, located in Le Mars, Iowa, hinges on the balance between yield potential and market stability. The area's median family income stands at $76,525, indicating a moderate financial base for residents.
On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,010, while the market rent is lower at $928. This suggests that landlords can potentially command rents slightly above the market average if they align their rental offerings with federal guidelines. Given the median home value of $272,877, the yield from rental properties appears relatively attractive compared to the cost of property acquisition.
Regarding stability, 34.9% of households are renters, which is a significant portion but not unusually high. The lack of available data on the average number of days on market (DOM) makes it challenging to assess the speed at which rental units turn over. However, the median income figure provides some assurance about the ability of residents to pay rent consistently.
Based on these figures, ZIP 51031 leans towards being a steady-cashflow zone. While the yield is not exceptionally high due to the relatively low market rent, the moderate income levels and significant percentage of renters suggest a stable demand for rental housing. Landlords can expect consistent cash flow with fewer risks associated with rapid market changes or tenant turnover.
To summarize:
This combination indicates a reliable investment opportunity for those seeking stable returns rather than high-risk, high-reward scenarios typical of flip-style markets.
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.