Location: Des Moines-West Des Moines, 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 | $830 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $260,763 | 0.38% | F |
| 3BR | $1,380 | $328,070 | 0.42% | F |
| 4BR | $1,610 | $395,302 | 0.41% | F |
U.S. Census Bureau data (2024)
In assessing the investment risk for Section 8 properties in ZIP code 50161 in Maxwell, IA, several factors need consideration. Tenant turnover is a significant concern, with the market rent at $1,063 being notably higher than the Fair Market Rent (FMR) of $970 for FY 2024. This discrepancy suggests that tenants might struggle to find alternative housing if they leave their Section 8 units, potentially leading to higher turnover rates. Additionally, vacancy exposure is a critical issue due to the lack of data on days on market (DOM), indicating uncertainty around how quickly vacancies can be filled. The typical home value in Maxwell is $322,936, while the median household income is $98,519. This income level may limit the ability of residents to cover any additional costs or maintenance fees that are not covered by the Section 8 program, increasing the risk of deferred maintenance.
However, these risks must be balanced against the high renter density in the area, represented by a 10.6% renter share. High renter density typically correlates with greater demand for rental properties, including those that accept Section 8 vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants willing to use their vouchers to secure housing. Despite the potential challenges, the strong demand for rentals in Maxwell, IA, offers some assurance that properties will remain occupied.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.