Location: Ames, IA | Metro: Ames, IA HUD Metro FMR Area
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 | $910 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $214,216 | 0.5% | F |
| 3BR | $1,500 | $288,026 | 0.52% | F |
| 4BR | $1,800 | $362,532 | 0.5% | F |
| 5BR | $2,088 | $467,961 | 0.45% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50010 in Ames, Iowa, for fiscal year 2024 is set at $1020. This figure represents the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay to cover a tenant's rent under the Section 8 housing program. It is important to note that this is not the rent you should charge your tenants; it is the reimbursement limit for the program.
Currently, the average market rent for ZIP 50010 is $1,045 according to the Zillow Rent Index (ZORI). This means that if you participate in the Section 8 program, your rental income will be slightly below the market rate, but still competitive. The reimbursement rate is designed to ensure that rents are affordable for low-income families while providing landlords with a fair market value for their properties.
The demand for rentals in Ames is significant, with 46.8% of the population being renters. This high percentage indicates a strong market for rental properties, including those that might be part of the Section 8 program. However, the demand does not guarantee occupancy, so it is crucial to understand the local rental dynamics and the preferences of potential tenants.
If you are considering purchasing a property for your first Section 8 rental, the median home value in ZIP 50010 is approximately $278,240. This figure reflects the typical price range for homes in the area and can help you assess the acquisition cost relative to the expected rental income. While the initial investment may seem substantial, the steady income provided by the Section 8 program can offer financial stability and long-term returns.
Before making a final decision on whether to proceed with a Section 8 rental, verify that your property meets HUD’s minimum housing quality standards known as the Housing Quality Standards (HQS). These standards ensure that the unit is safe, decent, and sanitary for tenants. Failure to meet these standards can result in disqualification from the program, leading to lost income opportunities.
In summary, the FMR of $1020 for ZIP 50010 sets a clear reimbursement limit for landlords participating in the Section 8 program. With the local market rent at $1,045, you can expect a slight reduction in income compared to non-subsidized tenants. Given the 46.8% renter share and median home value of $278,240, there is a solid demand for rental properties, but ensure your property meets HQS to avoid complications.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.