Location: Sioux County, IA | Metro: Lyon County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 51235 presents several challenges that must be carefully considered. Tenant turnover is a significant concern, with the market rent at $531 being notably lower than the Fair Market Rent (FMR) of $920 for the fiscal year 2026 in the metropolitan area. This disparity suggests that tenants who qualify for Section 8 vouchers might have limited options, leading to higher turnover rates as they seek better rental deals.
Vacancy exposure is another critical issue. The Days on Market (DOM) data is currently unavailable, which makes it difficult to predict how long a property might remain vacant. However, given the typical home value of $288,951 and a median income of $71,016, landlords should anticipate a need for substantial deferred maintenance. These factors can increase operational costs and reduce the likelihood of attracting and retaining tenants.
Despite these risks, the high renter density in ZIP 51235, where 25.8% of residents are renters, typically indicates robust demand for rental properties, including those supported by Section 8 vouchers. This high concentration of renters often translates into a stable pool of potential tenants who rely on government assistance to find affordable housing.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 51235 is moderate. While there are notable challenges such as tenant turnover and deferred maintenance, the strong rental market provides a counterbalance that can mitigate some of these risks.
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.