Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 50038 does not work in favor of landlords. The Fair Market Rent (FMR) set by HUD for this area for fiscal year 2024 is $1060, which is lower than typical market rents. However, since specific market rent data is not available, we cannot make a direct comparison. This discrepancy suggests that landlords may struggle to cover operational costs and maintain profitability at the HUD-subsidized rate.
Acquisition is not affordable based on the limited data available. With no specific median home value provided, it's challenging to assess the overall cost of property acquisition. Additionally, the lack of information regarding the average days on market (DOM) and the percentage of homes needing price cuts further complicates an accurate affordability analysis. Without these key metrics, potential investors cannot make informed decisions about the financial viability of purchasing properties in this area.
Tenant demand in ZIP 50038 is minimal. The area has a population of 235, but only 0.0% of residents are renters. This indicates a very low likelihood of finding tenants willing to pay the FMR rate of $1060 per month. Given the extremely low renter share, landlords would face significant challenges in attracting and retaining tenants, especially when the majority of the local population owns their homes.
In conclusion, ZIP 50038 presents a challenging environment for landlords and small-portfolio investors due to the unworkable rent math, unclear acquisition costs, and negligible tenant demand. The HUD-subsidized FMR rate of $1060 is insufficient to support profitable rental operations, while the absence of detailed market data makes it difficult to gauge the feasibility of property acquisitions. Furthermore, the near-zero renter share among the local population of 235 suggests that securing tenants will be exceptionally difficult. Investors should carefully consider these factors before engaging in rental activities in this area.
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.