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 | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $226,551 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 50160, located in the Des Moines-West Des Moines, IA HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy, primarily functioning as a cash-flow anchor. This classification is based on the substantial spread between the Fair Market Rent (FMR) set by HUD for the fiscal year 2024, which is $970, and the average market rent of $858. This $112 difference per month can be leveraged to ensure steady cash flow for landlords and small-portfolio investors.
In addition to the favorable rent spread, the median home value in ZIP 50160 stands at $219,384. This figure is critical for understanding the overall cost of entry into the real estate market within this area. For those looking to acquire properties for their Section 8 portfolio, the median home value indicates that while there might be a higher initial investment compared to some other areas, the potential for long-term stability and consistent rental income is significant.
The renter share in ZIP 50160 is 28.2%, which means nearly a third of the residents are renters. This percentage is not particularly high, but it does suggest a stable demand for rental properties. Furthermore, the median income of $57,500 aligns well with the eligibility requirements for Section 8 tenants, ensuring that there will be a pool of qualified applicants who can afford the rent without placing undue financial strain on themselves.
While the ZIP code does not present an immediate appreciation play due to the lack of data on price-cut shares and days on market (DOM), the combination of a positive rent spread and a moderate renter share makes it a reliable component of a diversified portfolio. The stability provided by the cash-flow anchor aspect of ZIP 50160 can help balance out the risks associated with other potentially more volatile markets within an investor's portfolio.
In conclusion, ZIP 50160 should be considered as a cash-flow anchor in a Section 8 portfolio strategy. Its ability to generate a predictable and positive cash flow through the $112 monthly rent spread, coupled with the presence of a stable number of renters and a median income level that supports Section 8 participation, makes it a solid choice for landlords and small-portfolio investors seeking to maintain a steady financial performance.
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.