Location: Ames, IA | Metro: Ames, 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 | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $306,789 | 0.47% | F |
| 4BR | $1,750 | $381,955 | 0.46% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50105 in fiscal year 2024 is set at $890. This figure represents the payment standard for Section 8 housing vouchers in your area, meaning it is the maximum amount that the Housing Choice Voucher program will pay toward a tenant's rent. It does not reflect the total rent you can charge; rather, it ensures that the voucher covers a significant portion of the rent.
To put this into perspective, the median gross rent in ZIP 50105, based on recent Census American Community Survey (ACS) data, is $865. This indicates that the FMR closely aligns with the typical rent levels in your area, ensuring that your property remains competitive in the market.
With a 12.4% share of renters in the area, there is a steady demand for affordable housing options. This percentage suggests that nearly one out of every eight residents in ZIP 50105 are looking for rental properties, which could translate into a consistent pool of potential tenants who qualify for Section 8 assistance.
When considering the acquisition cost of a rental property, the median home value in ZIP 50105 is $332,014. This figure can help you estimate the financial commitment required to purchase a property suitable for Section 8 tenants. While the initial investment might seem high, the long-term stability provided by government-backed rental payments can offset the risk.
Before proceeding with a Section 8 rental, ensure that your property meets all local housing quality standards known as Housing Quality Standards (HQS). These standards cover essential aspects such as safety, habitability, and structural integrity. A thorough inspection to confirm compliance with these HQS guidelines is crucial to avoid any delays in securing a Section 8 tenant.
In summary, the FMR of $890 in ZIP 50105 sets a clear benchmark for the government's contribution to rent, aligning closely with the local median rent of $865. The 12.4% renter share indicates a stable demand for rental properties, while the median home value of $332,014 provides insight into the cost of acquiring a property. By verifying that your property meets the necessary HQS requirements, you can confidently move forward with offering a Section 8 rental unit.
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.