Location: Ida 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 | $860 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,290 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,290 | $151,091 | 0.85% | C |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 51061 in fiscal year 2024 is set at $1000. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) to determine the maximum amount of rental assistance that can be paid on behalf of tenants participating in the Section 8 program. It does not reflect the actual rent you should charge your tenants.
In ZIP 51061, the average rent based on recent Census American Community Survey (ACS) data is $431. The FMR being significantly higher at $1000 suggests that landlords participating in the Section 8 program can receive a higher subsidy compared to typical market rates. This can help offset some of the costs associated with maintaining a rental property and provide a more stable income stream.
The 11.3% renter share indicates that approximately 11.3% of households in ZIP 51061 are renters. This percentage helps to gauge the potential demand for rental properties. With a smaller percentage of renters, it's important to ensure that your property meets the needs of those who are likely to participate in the Section 8 program, which can include families with low incomes.
The median household income in ZIP 51061 is $119,211. This figure is useful when considering the purchase price of a property for conversion into a Section 8 rental. While the income level might seem high, remember that the Section 8 program serves lower-income individuals and families, so the acquisition cost should align with the income levels of your target tenant demographic.
Before deciding to participate in the Section 8 program with a rental property in ZIP 51061, verify that your property meets HUD’s Housing Quality Standards (HQS). These standards ensure that the property is safe and habitable, and failing to meet them can result in disqualification from the program. Ensuring compliance with HQS will save you time and money in the long run.
Participating in the Section 8 program can be a strategic decision for landlords and small-portfolio investors looking to stabilize their rental income and serve a specific segment of the housing market. However, it requires careful consideration of both the financial implications and the regulatory requirements to ensure success.
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.