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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $109,905 | 0.76% | D |
| 2BR | $1,040 | $157,552 | 0.66% | D |
| 3BR | $1,250 | $201,780 | 0.62% | D |
| 4BR | $1,380 | $247,464 | 0.56% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 51109 does not favor landlords. The Fair Market Rent (FMR) for FY 2024 is set at $1020. However, the actual market rent, as per the latest Census ACS data, stands significantly lower at $627. This discrepancy means that landlords may struggle to find tenants willing to pay the higher FMR rate, leading to potential vacancies.
Acquisition in this area is relatively affordable. With a median home value of $173,905, purchasing properties can be managed within reasonable budgets. Unfortunately, the data on days on market (DOM) and the percentage of homes that required price cuts are not available. Despite this lack of detail, the low median home value suggests that the cost of acquiring property is favorable for investors looking to enter the Sioux City market.
Tenant demand in ZIP 51109 is modest. The total population is 3,606, with a renter share of 13.0%. This indicates that only about 469 individuals are likely to be seeking rental housing, which is a limited pool compared to the overall population size. Landlords must be prepared for competition and possibly adjust their rental pricing to attract and retain tenants.
In summary, while the acquisition cost in ZIP 51109 is affordable, the mismatch between the FMR and the actual market rent presents a challenge. Tenant demand is present but limited, necessitating careful management of rental properties and potentially requiring landlords to offer competitive rental rates to fill units. This area is suitable for cautious investors who can navigate these conditions effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.