Location: Sioux City, IA | Metro: Sioux City, IA-NE-SD MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $275,384 | 0.45% | F |
U.S. Census Bureau data (2024)
The disparity between these two figures places ZIP 68030 squarely in a scenario where the FMR exceeds the market rent. In such cases, landlords can leverage this situation to maximize their returns. Voucher tenants, under the Section 8 program, will receive a subsidy that covers the difference between the FMR and the actual rent they pay. Therefore, landlords can potentially charge closer to the FMR rate without deterring tenants who qualify for the housing voucher program.
This makes ZIP 68030 a prime location for a yield play strategy. With only 15.8% of the population being renters, the demand for rental properties is relatively low compared to areas with higher percentages of renters. However, the median home value stands at $254,717, indicating a stable housing market. Additionally, the median income of $76,442 suggests that residents have the financial capability to afford slightly higher rents.
Given the context, landlords should consider the following:
The potential to increase rental income by aligning with FMR levels, especially when dealing with voucher tenants.
The stability of the housing market, which supports higher rents without risking vacancy.
The financial health of the area's residents, allowing them to meet higher rental payments.
In conclusion, the gap between the FMR and market rent in ZIP 68030 presents a unique opportunity for landlords and small-portfolio investors to enhance their yields through the Section 8 program, while still maintaining a competitive position in the local rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.