Location: Sioux County, IA | Metro: O'Brien County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
Sioux County, IA metro area, specifically ZIP code 51238, offers a unique opportunity for inclusion within a Section 8 portfolio strategy. This ZIP code is best suited as a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the actual market rental rates.
The FMR for ZIP 51238 in the fiscal year 2026 is set at $920. In contrast, the current market rental rate stands at $684. This discrepancy creates an attractive scenario where landlords can leverage the higher FMR to secure steady, government-backed rental income that exceeds local market rates. The difference of $236 per month between the FMR and the market rental rate provides a substantial cushion against potential market fluctuations and ensures reliable cash flow.
Furthermore, the median home value in ZIP 51238 is $260,409. Given the relatively lower market rental rates compared to the FMR, landlords can expect to generate positive cash flow on properties they own in this area. This makes ZIP 51238 a solid choice for anchoring a portfolio with stable, high-rental-income properties.
While there is no specific data on price-cut shares or days on market (DOM), indicating that appreciation plays might not be as straightforward, the 12.1% renter share suggests a moderate demand for rental properties. Coupled with the median income of $74,000, landlords can expect a stable tenant pool capable of paying the Section 8-subsidized rents.
In summary, ZIP 51238 serves as a strong cash-flow anchor within a Section 8 portfolio strategy, thanks to the favorable spread between the FMR and the market rental rates. This positioning allows landlords to benefit from consistent, above-market rental income, securing their financial stability in the long term.
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.