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 | $1,130 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,900 | $239,888 | 0.79% | D |
U.S. Census Bureau data (2024)
ZIP code 50118 is situated within the Des Moines-West Des Moines, IA HUD Metro FMR Area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1230, which is slightly above the market rent of $1,151. This suggests that while the FMR is higher, it still aligns closely with what tenants are likely to pay, indicating a balanced position in terms of rental pricing.
The median home value in ZIP 50118 is $225,247, a figure that places it squarely in the mid-tier range when compared to other ZIP codes within the Des Moines-West Des Moines metro area. This value is neither exceptionally low nor high, suggesting that properties here are priced competitively but not at a premium.
With a renter share of 6.6%, ZIP 50118 has a lower percentage of renters compared to the typical ZIP code within the Des Moines-West Des Moines, IA HUD Metro FMR Area. However, this does not necessarily indicate a lack of opportunity for landlords. The combination of a slightly elevated FMR and a competitive home value can still make it an attractive location for Section 8 housing.
The data points towards ZIP 50118 being a mid-tier neighborhood within the larger Des Moines-West Des Moines metro area. It is not a value pocket due to its above-average FMR and home value, nor is it a premium sub-market given the relatively low renter share and modest home values.
A notable divergence is the lower renter share coupled with a median home value that is not significantly below the metro average. This could imply that there is potential for growth in the number of renters, making it a strategic location for landlords looking to enter the Section 8 market without the risk associated with highly sought-after premium sub-markets.
In summary, ZIP 50118 offers landlords and small-portfolio investors a middle ground within the Des Moines-West Des Moines metro area. The slightly higher FMR and competitive home values provide a solid foundation for managing Section 8 properties effectively.
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.