Location: Boone County, 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 | $1,010 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $201,772 | 0.6% | F |
| 3BR | $1,680 | $306,922 | 0.55% | F |
| 4BR | $2,010 | $377,863 | 0.53% | F |
| 5BR | $2,332 | $507,418 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 50014 is situated in Ames, Iowa, a city known for its vibrant academic community and moderate cost of living. With a total population of 32,958, it stands out due to its high rental rate composition, where 63.4% of residents are renters. The median household income here is $60,731, indicating a middle-class demographic that is likely stable and diverse. The median home value in this area is $268,590, reflecting a mix of affordable and moderately priced housing options.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 50014 for fiscal year 2024 is set at $1,150. This figure is notably higher than the market rent, which is currently estimated at $1,065 per month according to ZORI. The discrepancy between the FMR and the market rent suggests a potential opportunity for landlords and small-portfolio investors who can leverage the higher voucher rates to achieve better returns on investment.
Given these factors, ZIP 50014 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR provides a guaranteed income stream that exceeds the market average, making it an attractive option for those looking to manage properties with minimal tenant turnover. On the other hand, for hands-on value-add buyers, the area presents opportunities to renovate and improve properties, thereby increasing their market value and potentially attracting tenants willing to pay above the current market rent. Both strategies can be effective, depending on the investor's goals and resources.
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.