Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, 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 | $1,130 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $271,556 | 0.52% | F |
| 3BR | $1,910 | $312,276 | 0.61% | D |
| 4BR | $1,960 | $365,318 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,170 for ZIP 50035 in fiscal year 2024 will adequately cover the mortgage on a home priced at $329,865. To address this, consider the typical mortgage rate. Assuming a 4.5% interest rate, a 30-year fixed mortgage would amount to approximately $1,550 per month. This suggests that the FMR falls short by about $380.
The investor may also wonder if the 9.0% renter demand is sufficient. According to recent data, the median sale price of a home in 50035 was $338,000 in March 2026, with 43 homes sold in the same period. The rental market, however, does not have explicit data for 50035. A 9.0% demand rate indicates a moderate level of interest but does not guarantee strong rental income. Landlords must ensure their properties are attractive to renters.
Another concern could be whether housing vouchers will keep pace with the market rent of $1,289. Vouchers typically cover a significant portion of rent but may not always match the exact amount. In ZIP 50035, the FMR is lower than the market rent, indicating that vouchers might not fully cover the cost. Landlords should consider this gap when evaluating potential rental income.
In summary, while ZIP 50035 presents opportunities, investors must carefully evaluate the financial implications. The FMR is insufficient to cover the mortgage, the renter demand is moderate, and vouchers may not fully offset the market rent. These factors require thoughtful consideration and strategic planning to ensure profitability.
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.