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 | $810 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $169,185 | 0.69% | D |
| 3BR | $1,410 | $235,189 | 0.6% | F |
| 4BR | $1,570 | $283,147 | 0.55% | F |
| 5BR | $1,821 | $348,572 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 51104, located in Sioux City, Iowa, reveals several key points for landlords and small-portfolio investors. Firstly, the rent math does not align favorably. The Fair Market Rent (FMR) for FY 2024 is set at $1030, whereas the actual market rent, as indicated by Zillow's ZORI index, stands at $1,133. This discrepancy means that landlords receiving FMR may struggle to cover their costs, especially if they aim to maintain properties at market standards.
Secondly, regarding the affordability of acquisitions, the median home value of $222,215 suggests that purchasing property in this area is relatively accessible compared to other markets. The average days on market (DOM) of 25 days indicates a healthy pace of sales, which can be beneficial for quick turnover and liquidity. Furthermore, the low price-cut share of 0.2% implies that homes are generally selling close to their asking price, reducing the risk of significant financial loss upon resale.
Lastly, there is a notable tenant demand in the area. With a total population of 23,197, the 35.5% renter share represents a substantial pool of potential tenants. This figure translates to approximately 8,236 individuals who are likely seeking rental housing, providing a steady base of demand for landlords.
In conclusion, while the rent math presents a challenge due to the gap between FMR and market rents, the acquisition cost remains reasonable, and the market moves quickly with minimal price adjustments. Coupled with a robust tenant demand, ZIP 51104 offers a balanced opportunity for investment, albeit with the need for careful management to ensure profitability given the lower rent subsidy rates. Landlords must strategize to optimize occupancy and minimize vacancies to capitalize on the favorable acquisition dynamics and tenant interest in the area.
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.