Location: Greene County, 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $140,096 | 0.67% | D |
| 3BR | $1,200 | $193,734 | 0.62% | D |
| 4BR | $1,280 | $228,391 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 50058, located in Coon Rapids, Iowa, reveals some interesting insights into potential investment opportunities. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which stands at $970 per month according to the data for fiscal year 2024. This translates to an annualized rent of $11,640. In contrast, the market rent for a similar unit, based on Census ACS data, is $776 per month, equating to an annualized rent of $9,312.
To calculate the implied gross yield for both scenarios, we need to divide the annualized rents by the median home value, which is $173,891 in Coon Rapids. For the FMR scenario, the gross yield is calculated as follows: $11,640 / $173,891 = 0.067, or 6.7%. On the other hand, using the market rent figure, the gross yield is $9,312 / $173,891 = 0.0535, or 5.35%.
Given these calculations, it's evident that the FMR scenario offers a higher gross yield compared to the market rent scenario. However, the choice between the two depends on several factors. One critical factor is the local rental market dynamics, including the percentage of renters in the area. In ZIP 50058, the renter density is 22.8%, which suggests a relatively low demand for rentals. This could make it challenging to maintain occupancy rates at the higher FMR level consistently.
Additionally, the Days on Market (DOM) data being listed as N/A indicates a lack of comprehensive information regarding how quickly properties are rented out. This missing data point adds uncertainty to the analysis. Given the lower renter density, it is more realistic to expect that the actual gross yield will be closer to the market rent scenario, at 5.35%, rather than the FMR scenario at 6.7%. Investors should consider these figures as they assess the potential returns of properties in this ZIP code.
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.