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 | $1,320 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $197,633 | 0.82% | C |
| 3BR | $2,220 | $278,556 | 0.8% | D |
| 4BR | $2,280 | $352,910 | 0.65% | D |
| 5BR | $2,645 | $501,772 | 0.53% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 50047 (Carlisle, IA) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1060 cover the debt service on a property valued at $287,942?
Yes: If your debt service is less than $1060 per month, then the FMR does cover it. This means that tenants receiving Section 8 vouchers can afford the rent, making the property a viable option.
No: If your debt service exceeds $1060 per month, the FMR will not cover it. In this case, purchasing a property in Carlisle, IA, strictly for Section 8 tenants would be financially unfeasible without additional income sources.
It Depends: If your debt service is close to $1060, consider other factors such as maintenance costs, insurance, and property taxes before making a decision. The total expenses must be balanced against the FMR to ensure profitability.
2) How does the market rent of $1,227 compare to the FMR?
Above: If the market rent is higher than the FMR, you can still attract non-Section 8 tenants willing to pay more. This flexibility allows you to potentially increase your rental income beyond what Section 8 covers.
At: If the market rent is exactly at the FMR, you can only rely on Section 8 tenants paying the full rent. This scenario limits your ability to raise rents above the FMR.
Below: If the market rent is lower than the FMR, it suggests that the area may be economically challenged, with fewer tenants able to afford the higher FMR set by Section 8. This could indicate a riskier investment.
3) Is there sufficient demand with 17.7% of residents being renters and an unknown number of days on the market (DOM)?
Yes: With 17.7% of residents renting, there is a steady demand for housing. However, the lack of data on DOM makes it difficult to assess how quickly properties are rented. Despite this, the percentage of renters suggests a reasonable market for Section 8 properties.
No: If the percentage of renters is significantly low or if DOM is unusually high, indicating difficulty in finding tenants, then the demand for rental properties, including Section 8 units, may be insufficient.
It Depends: Given the limited data on DOM, the decision hinges on the percentage of renters. At 17.7%, there is some demand, but you must also consider the local economy and competition from other landlords to gauge the overall viability of the investment.
Based on these criteria, the decision to purchase in ZIP 50047 for Section 8 investment is clear only when the debt service is covered by the FMR and market rent is either at or above the FMR. The unknown DOM adds uncertainty, but the presence of renters indicates potential demand. Evaluate additional local factors for a comprehensive decision.
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.