Location: Greene County, 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 | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $123,954 | 0.75% | D |
| 3BR | $1,210 | $184,651 | 0.66% | D |
| 4BR | $1,450 | $227,217 | 0.64% | D |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 50129 (Jefferson, IA) for Section 8 investment should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property valued at $171,780?
If the landlord's debt service is less than $970 per month, then the answer is yes. For instance, if the mortgage payment, property taxes, insurance, and other monthly expenses total $850, the FMR comfortably covers these costs. However, if the debt service exceeds $970, the answer is no. In the case where debt service totals $1,000, the FMR falls short by $30.
2) Is the market rent of $760 above, at, or below the FMR?
The market rent is below the FMR. This means that landlords could potentially receive higher rents through Section 8 vouchers compared to the average market rent. However, it also suggests that there might be a gap between what tenants can afford and the FMR, which could affect the number of eligible tenants.
3) Are 23.0% of residents renters and do they have enough demand, given the N/A-day days on market (DOM)?
The percentage of renters is 23.0%, indicating a moderate rental market. The absence of data on days on market (DOM) suggests that either there is insufficient data or the market is relatively stable without significant fluctuations. Given the moderate rental rate, it depends on the landlord's tolerance for risk and their ability to attract Section 8 tenants. If the landlord can effectively market to Section 8 tenants and manage properties efficiently, the demand is sufficient. Otherwise, the landlord might face challenges in filling vacancies.
In conclusion, for ZIP 50129, a landlord can buy for Section 8 if their debt service is covered by the FMR of $970 and they are willing to navigate a market where the FMR is higher than the average market rent. The moderate rental population and lack of DOM data suggest a stable but competitive market, making the decision depend on the landlord's experience and strategy in attracting Section 8 tenants.
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.