Location: Sioux City, IA | Metro: Sioux City, IA-NE-SD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The ZIP code 57038 is situated in a suburban area characterized by a relatively small population of 1,796 residents. The demographic profile indicates a low percentage of renters at just 8.3%, suggesting a community predominantly composed of homeowners. Median household income in this area is notably high at $106,250, reflecting an affluent neighborhood. Median home values also align with this prosperity, standing at $383,724.
Moving into the economic analysis of rental properties, the Fair Market Rent (FMR) for ZIP 57038 in fiscal year 2024 is set at $980. This figure is slightly above the reported market rent of $913 according to the latest Census American Community Survey (ACS) data. The gap between FMR and market rent suggests that landlords participating in the Section 8 program can expect a modest premium over the average market rate, enhancing the profitability of their investments.
Given these conditions, ZIP 57038 may be more suitable for a hands-off voucher operator rather than a hands-on value-add buyer. The high median income and home values indicate a stable and wealthy local economy, reducing the risk of tenant turnover and default. Additionally, the limited number of renters implies a smaller pool of potential Section 8 tenants, which could make it challenging for a value-add buyer to find enough eligible applicants to justify active management. For a landlord looking to maintain a passive income stream with minimal involvement, this ZIP code presents a favorable environment.
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.