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 | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $204,411 | 0.55% | F |
| 3BR | $1,530 | $270,957 | 0.56% | F |
| 4BR | $1,570 | $331,528 | 0.47% | F |
U.S. Census Bureau data (2024)
Milo, IA, ZIP code 50166, is characterized by a small, tight-knit community with a total population of 2,023 residents. The neighborhood has a low percentage of renters at just 7.2%, indicating that it is predominantly owner-occupied. This residential makeup suggests a stable environment where long-term homeownership is prevalent. The median household income in this area stands at $107,279, reflecting a relatively affluent community. The median home value of $273,516 further underscores the financial stability and the high quality of life in Milo.
When considering the rental market dynamics, the Federal Market Rent (FMR) for ZIP code 50166 in fiscal year 2024 is set at $970. In contrast, the market rent, according to Census American Community Survey (ACS) data, is approximately $775. This discrepancy between the FMR and the actual market rent presents an opportunity for landlords and small-portfolio investors. The higher FMR can lead to better rental income if tenants are participating in the Section 8 program, which subsidizes rents up to the FMR level.
The practical implications of these figures for potential investors are significant. For hands-off operators who seek steady, reliable returns without extensive property management, Milo's low renter percentage and stable homeowner base make it a suitable location. However, the gap between the FMR and market rent also opens avenues for hands-on investors looking to add value. By enhancing property offerings or managing properties more efficiently, such investors could potentially capture a portion of the subsidy difference, thereby increasing their profitability.
In conclusion, ZIP 50166 in Milo, IA, offers a mix of opportunities for both passive and active investors. The financial stability of the neighborhood, combined with the favorable Section 8 FMR, makes it an attractive investment location. Whether the strategy involves minimal intervention or proactive property management, the economic landscape of Milo supports successful investment outcomes.
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.