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 | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $228,781 | 0.5% | F |
| 3BR | $1,560 | $320,094 | 0.49% | F |
| 4BR | $1,590 | $417,374 | 0.38% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 50063, which falls under the Dallas Center, IA, Des Moines-West Des Moines, IA HUD Metro FMR area, does not align favorably. The Federal Market Rent (FMR) set at $970 for fiscal year 2024 is significantly lower than the market rent of $1,063 reported by the Census ACS. This discrepancy suggests that properties relying solely on Section 8 vouchers will struggle to cover costs, including maintenance and property taxes, at the FMR rate.
Acquisition in this area is relatively affordable with a median home value of $326,165. However, the lack of available data on days on market (DOM) and the percentage of homes that required price cuts indicates a potential market inefficiency. Without these metrics, it's challenging to gauge how quickly homes sell and whether they need price adjustments, which are crucial for assessing the overall affordability and liquidity of acquisitions.
Tenant demand in ZIP 50063 is moderate. With a total population of 2,720, the 16.1% renter share translates to approximately 438 potential renters. Given the size of the population, this number of renters could sustain a modest rental market, but it might not support extensive rental development or large-scale investment strategies.
Verdict: The rent math in ZIP 50063 does not work in favor of landlords seeking to participate in the Section 8 program due to the substantial gap between the FMR and market rent. Acquisition is affordable based on the median home value, yet the absence of key market performance indicators introduces uncertainty. Tenant demand is present but limited, suitable for small-scale investments rather than large portfolios. Landlords should proceed with caution, carefully balancing the risks and rewards associated with this market.
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.