Location: Des Moines-West Des Moines, 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 | $960 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $247,159 | 0.47% | F |
| 3BR | $1,590 | $295,632 | 0.54% | F |
| 4BR | $1,860 | $423,682 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50046 in Cambridge, Iowa, reveals a unique balance between yield and stability. On the yield axis, the Fair Market Rent (FMR) for FY 2024 stands at $1050, which is higher than the market rent of $925. This suggests that landlords can potentially charge above-market rents due to the FMR threshold, thereby increasing their rental income. However, the median home value of $321,516 indicates a relatively high investment cost, which could affect the overall yield when considering the capital outlay required.
Moving to the stability axis, the data paints a picture of a moderately stable market. The percentage of renters at 14.0% is low, indicating that homeownership is prevalent in the area. While this might suggest lower demand for rentals, it also implies a more stable community with fewer turnovers. The lack of data on days on market (DOM) makes it difficult to assess the speed at which properties are rented, but the average household income of $81,500 provides a solid financial foundation for potential tenants, reducing the risk of non-payment.
Based on these figures, ZIP 50046 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The ability to charge rents slightly above the market rate due to the FMR threshold supports a moderate yield, while the low percentage of renters and stable income levels contribute to a sense of security and predictability in cash flow. Landlords should expect a reliable, albeit not exceptionally high, return on investment over time.
To further illustrate:
In conclusion, while the yield in ZIP 50046 is decent, the stability factors make it more suitable for investors looking for consistent cash flow rather than those seeking high returns through rapid property flips. The combination of slightly elevated rental rates and a stable tenant base positions this area firmly in the middle ground, offering a balanced approach to real estate investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.