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 | $1,120 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $220,484 | 0.63% | D |
| 3BR | $1,880 | $321,872 | 0.58% | F |
| 4BR | $1,930 | $404,176 | 0.48% | F |
| 5BR | $2,239 | $535,448 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 50111, located in Grimes, Iowa, within the Polk County and Des Moines-West Des Moines HUD Metro FMR Area, offers a clear analysis for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1090 per month for the fiscal year 2024. In comparison, the Zillow Observed Rent Index (ZORI), which reflects the actual market rent, stands at $1,398. This indicates that voucher tenants will generally cashflow only with premium units, as the difference between the HUD FMR and market rent is significant.
To further analyze the investment potential, consider the median home value in the area, which is $346,213. Using this figure, we can calculate the rent-to-price ratio. At $1090 per month, the annual rent is approximately $13,080, leading to a rent-to-price ratio of roughly 3.78%. This suggests that the rental income is relatively low compared to the purchase price of homes, indicating that the primary benefit for investors might not be cash flow but rather other factors such as stability or appreciation.
The dynamics of the local real estate market also play a role in the decision-making process for investors. With a median Days on Market (DOM) of 45 days and a price-cut share of just 0.3%, it's evident that the market is stable and sellers are not typically forced to reduce their asking prices. These metrics indicate a robust local economy where property values are likely to remain steady or appreciate gradually over time.
In conclusion, while cash flow from Section 8 vouchers in ZIP 50111 may be limited to premium units, the strong stability and potential for gradual appreciation make this area an attractive investment opportunity for landlords and small-portfolio investors looking for long-term gains.
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.