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 | $1,070 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $484,344 | 0.37% | F |
| 4BR | $1,840 | $653,304 | 0.28% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 50061 within the Des Moines-West Des Moines, IA HUD Metro FMR Area highlights several key points regarding rental income potential and property investment strategies. The HUD Fair Market Rent (FMR) for ZIP 50061 is set at $1,000 per month for fiscal year 2024. This figure is notably lower than the Census American Community Survey (ACS) reported market rent of $1,163 per month, indicating that voucher tenants will only cashflow marginally at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in the area, which stands at $598,026. Using this data point, we can derive the rent-to-price ratio. A monthly rent of $1,000 translates to an annual rent of $12,000, resulting in a rent-to-price ratio of approximately 2%. This low ratio suggests that the buy versus rent dynamic in this market favors purchasing over renting, as the cost of renting is relatively low compared to the cost of owning a home.
However, due to the lack of specific data on the median days on market (DOM) and the percentage of price cuts shared by sellers, it's challenging to make precise predictions about how quickly properties might sell or the extent of price adjustments needed in the event of a downturn. Nonetheless, the current trends indicate that the market is stable, with minimal fluctuations expected in the near future.
In conclusion, the strongest investor angle in ZIP 50061 is likely to be stability. Given the consistent demand for housing and the relatively modest gap between HUD FMR and market rents, investors can expect reliable cash flows without significant risk of vacancy or default. Additionally, the high median home value supports long-term investment strategies focused on maintaining rather than rapidly increasing property values.
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.