Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 50009, which encompasses Altoona, Iowa, and part of Polk County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1120. This figure represents the maximum amount that the government will pay toward rent for a two-bedroom unit under the Section 8 program.
Local market rents, as indicated by ZORI (Zillow Observed Rent Index), stand at $1,601. This discrepancy between the SAFMR and the ZORI highlights the financial challenge landlords face when participating in the Section 8 program. To understand the actual reimbursement landlords receive, it's essential to consider both the tenant's portion of the rent and the utility allowances.
A voucher holder typically pays 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 for a voucher holder, the tenant would contribute approximately $450 toward the rent. Additionally, there is a utility allowance, which varies but is generally around $250 for a two-bedroom unit in this area. Therefore, the total reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom apartment would be $1120 (SAFMR) + $250 (utility allowance) = $1370.
This means that if a landlord charges the local market rent of $1,601, they would have a reimbursement gap of $1,601 - $1370 = $231 per month. Conversely, if the landlord sets the rent at the SAFMR level of $1120, they would not only fill the gap but also benefit from the additional $250 utility allowance, effectively receiving $1370 in total reimbursement. In this scenario, the landlord would be below the market rent but still receive a surplus over the SAFMR.
In conclusion, landlords in ZIP 50009 who choose to participate in the Section 8 program must balance the SAFMR rate of $1120 with the local market rent of $1,601. They should be aware of the reimbursement gap or surplus based on their rental pricing strategy. By setting rent at the SAFMR level, landlords can ensure full coverage plus a utility allowance, while higher rents lead to a monthly shortfall of $231.
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.