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 | $960 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $215,929 | 0.55% | F |
| 3BR | $1,610 | $297,122 | 0.54% | F |
| 4BR | $1,650 | $368,890 | 0.45% | F |
| 5BR | $1,914 | $478,606 | 0.4% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 50125, located in Indianola, Iowa, within the Des Moines-West Des Moines, Iowa HUD Metro FMR Area, reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for this area is set at $970 for fiscal year 2024, while the market rent based on Census ACS data stands at $992. This means that voucher tenants will only cashflow marginally, with landlords receiving slightly less than the average market rent. However, the difference is minimal, indicating that the risk of vacancy is relatively low.
To further understand the investment potential, consider the median home value in the area, which is $309,545. Using this figure, we can calculate the rent-to-price ratio, which is approximately 1.2%. This ratio suggests that rental income represents a modest portion of the property's value, indicating that appreciation or stability might be stronger factors for long-term investment success.
The median Days on Market (DOM) for properties in this area is 35 days, and only 0.2% of homes have had their prices cut. These metrics indicate a strong seller's market where homes sell quickly and without significant price reductions. While these numbers primarily reflect the buying market, they do suggest a stable and potentially appreciating housing market, which could benefit investors over time.
The strongest angle for investors in this market is stability. With a slight disparity between market rent and FMR, combined with quick sales and minimal price adjustments, the area offers a predictable and reliable investment opportunity.
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.