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 | $1,100 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $290,859 | 0.46% | F |
| 3BR | $1,840 | $307,869 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 50073, located in Elkhart, Iowa, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area is set at $1140 per month for the fiscal year 2024. In contrast, the Census ACS reports an average market rent of $841 per month. This discrepancy indicates that voucher tenants will cashflow at the HUD FMR rate, providing a positive financial outlook for property owners.
To further understand the investment potential, consider the median home value in the area, which stands at $314,629. Using the HUD FMR of $1140, we can calculate a rent-to-price ratio of approximately 0.0043, suggesting that rental income represents a significant portion of the overall property value. This metric is particularly useful for investors looking to gauge the relative affordability of homes based on rental yields.
Note that the median Days on Market (DOM) and the percentage of properties requiring price cuts are not available for this analysis. However, these factors typically play a role in determining the balance between buying and renting. Given the strong cashflow potential, it's reasonable to infer that the buy-versus-rent dynamics favor investors seeking steady rental income over speculative home purchases.
In conclusion, the strongest angle for investors in ZIP 50073 is the robust cashflow opportunity provided by the disparity between HUD FMR and actual market rents. This makes the area particularly attractive for those focused on generating consistent rental income rather than capital appreciation or market stability.
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.