Location: Plymouth 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 | $1,050 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $166,358 | 0.9% | C |
| 3BR | $1,830 | $255,801 | 0.72% | D |
| 4BR | $2,030 | $364,551 | 0.56% | F |
| 5BR | $2,355 | $560,973 | 0.42% | F |
U.S. Census Bureau data (2024)
16.7% of residents in ZIP 51108, Sioux City, IA, are renters, indicating a moderate demand for rental properties in the area. The $255,730 median home value reflects a stable housing market, but it's the rental dynamics that truly capture the essence of investment potential here. At $1,350, the average market rent as per Census ACS data suggests a competitive rental environment. However, when juxtaposed with the $1030 Fair Market Rent (FMR) for zip code FY 2024, it becomes evident that there is room for strategic pricing to attract Section 8 tenants. This discrepancy between the FMR and market rent highlights an opportunity where landlords can leverage the Section 8 program to fill vacancies without compromising on profitability.
The median income of $81,205 provides insight into the economic health of the area, suggesting that while not excessively high, incomes are sufficient to support a mix of rental and homeownership markets. Despite the lack of specific data on days on market (DOM) and the percentage of price-cut shares, the overall economic stability indicated by these figures supports a favorable outlook for rental investments. Landlords and small-portfolio investors can confidently navigate this market, knowing that the economic foundation is sound and the rental demand is steady.
In conclusion, Sioux City, IA, represented by ZIP 51108, presents a balanced investment opportunity for those interested in the rental market. With a moderate renter share and a reasonable gap between market rents and the FMR, the city offers a promising environment for Section 8 participation. The verdict for Section 8 investments in Sioux City, IA, is positive, given the supportive economic conditions and the potential for steady returns.
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.