Section 8 Fair Market Rent (FMR) for ZIP 51111 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$860
1 Bedroom	$990
2 Bedrooms	$1,230
3 Bedrooms	$1,490
4 Bedrooms	$1,670
5 Bedrooms	$1,937
6 Bedrooms	$2,169
7 Bedrooms	$2,343
8 Bedrooms	$2,460

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the analysis for ZIP Code 51111 in Sioux City, IA, focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 51111 in fiscal year 2024 is set at $1060. However, the market rent data is not fully available, with only ranges provided for certain bedroom configurations. For instance, 3+ bedroom rentals typically range from $750 to $999 per month, including utilities, while 2 bedroom units are priced between $500 and $749 per month.

The gap between the FMR and the market rent is significant. Specifically, the FMR exceeds the typical market rent for both 2 and 3+ bedroom units. This means that landlords accepting Section 8 vouchers can expect to receive higher rents compared to the open market. The difference is $70 to $310 for 2 bedroom units and $60 to $310 for 3+ bedroom units, translating to an increase of 8.5% to 41.3% above the high end of the market rent.

This situation makes ZIP 51111 a yield play for landlords who accept Section 8 tenants. The rental assistance program ensures a steady stream of income that is often higher than what would be achieved through open-market leasing. Given the 100.0% renter population in the area, the demand for affordable housing is strong, which further supports the viability of accepting Section 8 vouchers.

However, it is important to note that the cost of housing voucher tenants below open-market rates can lead to a misalignment in expectations for property owners. While the FMR provides a guaranteed income floor, it does not account for potential maintenance issues or the administrative burden of managing voucher programs. Therefore, landlords must carefully balance the benefits of higher guaranteed rents against the realities of tenant management and property upkeep.

In conclusion, the gap between the FMR and the market rent in ZIP 51111 presents a clear opportunity for landlords to generate higher yields by participating in the Section 8 program. The strong rental demand and the lack of median home value or median income data suggest a focus on rental properties rather than owner-occupied homes, making this strategy particularly relevant for the local real estate market.

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.