Location: Des Moines-West Des Moines, 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 | $1,140 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $181,862 | 0.74% | D |
| 3BR | $1,870 | $307,668 | 0.61% | D |
| 4BR | $2,250 | $408,464 | 0.55% | F |
| 5BR | $2,610 | $518,738 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 50124 in Huxley, IA, encompasses a relatively small neighborhood with a total population of 4,859 residents. Only 17.9% of these residents are renters, indicating a predominantly owner-occupied community. The area boasts a high median household income of $114,904, which is significantly above the national average. This financial stability is further reflected in the median home value of $340,550, suggesting that homeowners in this area have considerable equity and are likely to be financially secure.
Moving into the economic realities of rental properties, the Fair Market Rent (FMR) for ZIP 50124 in fiscal year 2024 is set at $980. However, the actual market rent as per the Census Bureau's American Community Survey stands at $1,393. This gap between FMR and market rent presents an opportunity for landlords and small-portfolio investors to either operate hands-off with Section 8 vouchers or engage in a more hands-on approach to improve property values and rents.
For a hands-off voucher operator, ZIP 50124 offers a stable environment with a high median income, reducing the risk of non-payment and ensuring a steady stream of tenants who can afford the FMR. However, the lower percentage of renters means that demand for subsidized housing might be limited, potentially affecting the occupancy rate.
A hands-on value-add buyer could leverage the higher market rent to increase cash flow and property value over time. With a significant difference between FMR and market rent, there is room to enhance property quality and charge closer to the market rate once the improvements are made. This strategy would require active management and investment but could yield substantial returns given the strong local economy and high median incomes.
In conclusion, ZIP 50124 in Huxley, IA, is a desirable location for both hands-off and hands-on investors, depending on their strategy. For those preferring minimal involvement, the high median income and low risk of default make it suitable. For investors willing to invest in property upgrades, the potential to command higher rents makes it an attractive option for value-add investments.
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.