Location: Sac County, IA | Metro: Sac County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 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 analysis of the Section 8 program in ZIP 51450 highlights a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent. For fiscal year 2026, the FMR is $920, while the market rent stands at $683 according to Census ACS data. This creates a $237 gap, which represents approximately 34.7% of the market rent.
The FMR is higher than the market rent, indicating that voucher tenants can potentially offer landlords a higher rental income than what is currently available in the open market. Given that only 11.5% of residents are renters, the demand for rental properties is relatively low compared to owner-occupied homes. However, the median home value in ZIP 51450 is $230,880, and the median income is $71,875, suggesting that homeownership is more common and affordable for many residents.
This scenario makes ZIP 51450 a yield play for landlords who participate in the Section 8 program. By accepting Section 8 vouchers, landlords can benefit from a higher rental rate than the prevailing market conditions. The additional income provided by the voucher system compensates for the administrative burden and the potential challenges associated with managing subsidized housing.
Landlords should be aware of the cost implications of housing voucher tenants below open-market rates. While the FMR provides a benchmark, it does not guarantee full occupancy or eliminate the need for property maintenance. However, the financial benefits of receiving rents closer to the FMR can outweigh these costs, especially given the low rental market penetration in ZIP 51450.
In summary, the gap between the FMR and market rent in ZIP 51450 presents a compelling opportunity for landlords to enhance their rental yields through the Section 8 program. This is particularly true when considering the broader economic context of the area, where homeownership remains a prevalent choice among residents.
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.