Location: Sioux City, IA | Metro: Sioux City, IA-NE-SD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The ZIP code 51101 encompasses a neighborhood characterized by a predominantly rental market, with only 1,031 residents and 96.6% of them being renters. The area has a median income of just $15,300, indicating a low-income demographic. Despite the modest incomes, the median home value stands at $176,427, suggesting that property values are relatively high compared to the average earnings of the residents.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 51101 in fiscal year 2024 is set at $910. This is notably higher than the reported market rent of $708 based on Census ACS data. This discrepancy highlights an opportunity for landlords who can leverage the higher FMR rates to secure better returns through Section 8 housing vouchers.
Given these factors, ZIP 51101 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the high percentage of renters and the favorable FMR rates make it an attractive area to invest in properties that can benefit from the Section 8 program without requiring active management. Meanwhile, value-add buyers can capitalize on the potential to increase rents closer to the FMR level while improving property conditions to meet the needs of low-income families, thus enhancing their investment's value over time.
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.