Location: Boone County, 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 | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $323,332 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 50134 is situated in a suburban area characterized by a relatively small population of 770 residents. The demographic profile indicates that approximately 30.2% of the residents are renters, suggesting a modest demand for rental properties. With a median household income of $111,250, the area is economically stable and likely attracts professionals and families seeking a comfortable living environment.
The median home value in ZIP 50134 stands at $340,179, reflecting the overall financial health and desirability of the region. From an investment perspective, it's crucial to consider the rental economics. According to the latest data, the Fair Market Rent (FMR) for ZIP 50134 in fiscal year 2024 is set at $890, while the average market rent based on Census ACS data is $956. This indicates that landlords participating in the Section 8 program can expect a slight shortfall compared to market rates, but the difference is minimal given the economic backdrop of the area.
Considering these factors, ZIP 50134 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable economy and low renter percentage ensure a steady, albeit smaller, stream of tenants who are financially capable of meeting the requirements of the Section 8 program. Meanwhile, value-add buyers can leverage the higher market rents to increase profitability by improving property conditions or adding amenities that attract non-voucher tenants willing to pay above the FMR.
In conclusion, ZIP 50134 offers a balanced opportunity for Section 8 investors, with a favorable economic climate and a manageable gap between FMR and market rents. Whether aiming for passive income through voucher participation or active management to capture higher market rents, the area presents viable options for real estate investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.