Location: Shelby County, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $970 for ZIP 50025 in fiscal year 2024, landlords can expect to receive this amount per unit if they participate in the Section 8 program. However, the actual market rent reported by the Census ACS stands at $754, indicating that the FMR is above the average rent paid by tenants in this area. This differential presents an opportunity for landlords to potentially increase their rental income while still being competitive in the local market.
The median home value in ZIP 50025 is $150,699, which suggests that there is a significant affordability gap for homeownership compared to renting. With 30.1% of residents being renters, it's clear that a substantial portion of the population relies on rental housing, making it a viable investment option for small-portfolio investors.
The median income for the area is $52,438, which is below the national average. This lower income level means that many residents are likely to qualify for the Section 8 program, increasing the demand for subsidized housing units. While the days on market (DOM) figure is not available, the low price-cut share of 0.1% indicates that properties are generally selling at or near their listed prices, suggesting strong demand and a favorable market for rental investments.
In summary, the higher FMR compared to the market rent, combined with a significant renter share and a lower median income, makes ZIP 50025 a prime location for Section 8 investments. The strong property market, evidenced by the low price-cut share, further supports this conclusion. For landlords and small-portfolio investors looking to enter the Section 8 housing market, ZIP 50025 offers a promising opportunity to secure steady rental income while providing affordable housing options.
Section 8 verdict: ZIP 50025 is a solid choice for Section 8 investments due to favorable rental rates and high tenant qualification.
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.