Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 50033 in fiscal year 2024 will sufficiently cover the mortgage on a typical home in this area. Given the limited data, we cannot provide a precise average home price for ZIP 50033. However, the median house value in the area is significantly below the state average, suggesting that homes in this ZIP code are likely more affordable. With current mortgage rates fluctuating but generally around 5%, a conservative estimate would show that the FMR can indeed cover the mortgage on a modestly priced home.
The investor may also wonder if there is sufficient demand among renters at a 33.3% rate. According to recent statistics, ZIP 50033 has a slightly higher percentage of renter-occupied units compared to the national average. This indicates a steady demand for rental properties, which is positive for potential investors looking to generate consistent rental income.
Another concern is whether housing vouchers will keep pace with market rents in ZIP 50033. While specific data for this ZIP code is not readily available, HUD's Housing Choice Voucher (HCV) Data Dashboard provides a comprehensive view of voucher trends across the country. The voucher payment standard for ZIP 50033 is currently set at a level that reflects the local market conditions. However, it's important to note that the payment standard may adjust annually based on changes in the local market. To ensure compliance and maximize rental income, landlords should use tools such as the Section 8 Rent Calculator to stay informed about the exact limits applicable to their properties.
In conclusion, while there are valid concerns about the FMR covering mortgages and the adequacy of renter demand, the data suggests that ZIP 50033 presents a viable opportunity for small-portfolio investors. The voucher system is designed to support local market conditions, though ongoing monitoring is recommended to align with any adjustments.
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.