Section 8 Fair Market Rent (FMR) for ZIP 50109 - 2027

Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area

Investment Score for ZIP 50109

Monthly Rent (2BR)

$1,120

Median Price (2BR)

$315,912

1% Rule

0.35%

Annual Yield

4.25%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$910
1 Bedroom	$940
2 Bedrooms	$1,120
3 Bedrooms	$1,530
4 Bedrooms	$1,570
5 Bedrooms	$1,821
6 Bedrooms	$2,040
7 Bedrooms	$2,203
8 Bedrooms	$2,313

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,120	$315,912	0.35%	F
3BR	$1,530	$347,893	0.44%	F
4BR	$1,570	$432,157	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,309

Median Household Income

$118,669

Housing Units

1,432

Renter Percentage

14.3%

Occupancy Rate

86.5%

Renter Occupied

177

The area around ZIP code 50109, encompassing Granger, Iowa, presents a unique opportunity for real-estate investors interested in a stable market with modest rental demand. This rural community is characterized by its low population density and high median income, which influences both the housing market and tenant demographics.

The Fair Market Rent (FMR) for ZIP 50109 in fiscal year 2024 is set at $1,140, providing a benchmark for rental pricing in the area.
The actual market rent, as reported by the Census American Community Survey (ACS), is currently $843, indicating that rents are below the FMR, leaving room for potential increases.
The median home value in the area stands at $375,424, reflecting the relatively high cost of homeownership compared to the national average.
Renters make up 14.3% of the housing market in Granger, suggesting that the majority of residents prefer owning their homes over renting.
The median income for households in ZIP 50109 is $118,669, which is significantly higher than the national median, pointing to a strong economic base that can support higher rents.
Unfortunately, the data on Days on Market (DOM) is not available, which would have provided insight into how quickly properties are rented out in this area.

Investors looking to enter the Granger, Iowa, market should consider the discrepancy between the FMR and current market rents, indicating potential for rental price adjustments. The high median income supports the possibility of increasing rents without negatively impacting occupancy rates. However, given the low renter share, it's important to note that the demand for rental properties is limited, and investors should focus on quality and location to attract tenants. While the lack of DOM data hinders a complete picture, the overall stability of the area and the presence of a solid economic foundation make it a viable option for cautious investors seeking long-term, steady returns.

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.