Location: Greene County, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 50128 in the Greene County, IA metro area reveals several key points for landlords and small-portfolio investors. First, regarding the rent math, the Family Monthly Rent (FMR) set at $970 for fiscal year 2024 does not align well with the current market rent of $498 as reported by the Census ACS. This discrepancy suggests that the rent set by the government is nearly double what the market can bear, making it challenging for landlords to find tenants willing to pay the higher FMR.
Second, the acquisition affordability is questionable. With a median home value of $174,197, the investment cost is significant. However, the lack of data on days on market (DOM) and the percentage of homes that have been listed with a price cut indicates an incomplete picture of how quickly properties sell and at what price point. This uncertainty can make it difficult to gauge the true affordability of acquiring properties in this area.
Third, the tenant demand is relatively low. The total population of 330 residents means a limited pool of potential renters, especially given that only 18.1% of the population are renters. This small number of renters combined with the high FMR makes it unlikely that landlords will find sufficient tenant demand to fill their units at the required rent levels.
In conclusion, ZIP 50128 presents a challenging environment for landlords and small-portfolio investors due to the mismatch between the high FMR and the lower market rent, the potentially high costs of property acquisition without clear indicators of market speed or price flexibility, and the low overall demand for rental housing. The evidence strongly suggests that this area may not be a viable option for those seeking to invest in Section 8 properties.
Data Sources: FMR data from HUD (2027). 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.