Location: Sac County, IA | Metro: Crawford County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 51458 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $920, while the Census ACS data shows the market rent at $660. This means there is a $260 difference, or approximately a 39.3% gap between what the government considers fair and the current market rates.
In this scenario, where the FMR exceeds the market rent, landlords can leverage Section 8 vouchers to secure higher yields on their investments. Voucher tenants pay a portion of their income towards rent, with the remainder subsidized by the government. Given the 17.7% of renters in the area and a median home value of $140,620, landlords can attract tenants who might otherwise struggle to afford the rental costs, thereby ensuring steady occupancy and cash flow.
The median income in ZIP 51458 is $86,250, indicating that residents have the financial stability to meet the higher rents associated with Section 8 vouchers. However, landlords must be aware of the potential administrative burden and compliance requirements when participating in the Section 8 program. Despite these challenges, the opportunity to receive a higher rent ($920) compared to the open-market rate ($660) makes it a viable option for maximizing returns.
To summarize, the gap between the FMR and market rent in ZIP 51458 presents an attractive yield play for landlords and small-portfolio investors. By accepting Section 8 vouchers, they can command higher rents without significantly increasing the risk profile of their investment properties.
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.