Location: Marion 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 | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,570 | $312,030 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 50139 is anchored by the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $970, while the Census ACS data indicates a market rent of $1,049. This represents a gap of $79, or approximately 8.5%, where the market rent exceeds the FMR.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the implications this has on their rental yields. Accepting Section 8 tenants means renting out units at a rate below the open-market value, which could reduce overall profitability. However, the decision to participate in the Section 8 program must be weighed against other factors such as the stability of rental income and the broader economic context of the area.
In ZIP 50139, only 8.3% of residents are renters, indicating a primarily owner-occupied market. The median home value stands at $300,068, reflecting a relatively affluent community. With a median income of $72,400, most residents can afford higher rents, which further supports the high market rent observed.
Despite these favorable conditions, the lower FMR poses a challenge for landlords who might find themselves renting below the market rate. This scenario is particularly relevant when considering the cost of maintaining properties that attract voucher tenants. These costs include the administrative burden of managing Section 8 properties and the potential for slower turnover due to the stability provided by government subsidies.
To summarize, the gap between FMR and market rent in ZIP 50139 suggests that landlords accepting Section 8 vouchers will rent their units at a rate that is $79, or 8.5%, below what the market would bear. While this may impact profitability, it also provides a stable tenant base in an otherwise low-renter environment, with high median incomes and home values supporting the potential for higher yields outside the Section 8 program.
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.