According to a statement from Bachmann’s campaign, actor John Wayne‘s parents did live in Waterloo before Wayne’s birth. ABC News confirmed that story:

And a little internet research proves that point correct.
According to the book “Duke: We’re Glad We Knew You” by Herb Fagen, Clyde and Molly Morrison – actor John Wayne’s parents – lived in Waterloo early in their marriage – but they moved to Winterset before the birth of son Marion Mitchell Morrison (he changed his name to John Wayne professionally).

see ABC video http://video.foxnews.com/v/1026355838001/bachmanns-poll-numbers-surge/

UPDATE:
As reader POORRICHARDSNEWS points out, NY Mag has taken to outright smearing Bachmann. The magazine published a picture online of Bachmann in clown makeup. Gacy, you might remember, was notorious for dressing up like a clown:


*This story originally noted that Gacy was born in Waterloo. He was actually born in Chicago