Location: Sioux City, 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 | $740 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $283,015 | 0.46% | F |
U.S. Census Bureau data (2024)
In ZIP code 51039, there are several factors that could negatively impact an investment in Section 8 properties. First, tenant turnover poses a significant risk due to the discrepancy between the market rent of $903 and the Fair Market Rent (FMR) for FY 2024, which stands at $1020. This difference can lead to higher vacancy rates, as tenants may seek properties that offer better value for their money. Second, the vacancy exposure is heightened by the lack of available data on days on market (DOM), indicating potential unpredictability in finding suitable tenants quickly. Third, the deferred maintenance risk is considerable, considering the typical home value of $267,929 and the median income of $110,000. The lower median income suggests that homeowners might delay necessary repairs, leading to increased maintenance costs for landlords.
However, these risks must be weighed against the high concentration of renters in the area, with 18.1% of residents being renters. High renter density typically translates into a robust demand for rental housing, including those supported by Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
The verdict for ZIP 51039 is moderate risk for a first-time Section 8 landlord. While there are notable challenges, the strong renter presence provides a buffer against some of the investment's inherent risks.
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.