Location: Des Moines-West Des Moines, IA | Metro: Jasper County, 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 | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $356,931 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 50168 is situated in a neighborhood characterized by a relatively small population of 826 residents. Only 15.0% of these residents are renters, indicating a predominantly owner-occupied area. The median household income here stands at a robust $113,750, suggesting a community of middle to upper-middle class families. Median home values are also impressively high, at $324,339, reflecting the area's overall economic stability and desirability.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 50168 in fiscal year 2024 is set at $970. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher. However, it's worth noting that the actual market rent, as per the Census Bureau's American Community Survey, is significantly lower at $746. This discrepancy between the FMR and the market rent means that landlords who participate in the Section 8 program can potentially earn more than they would from market-rate tenants.
Given the characteristics of ZIP 50168, it presents an interesting opportunity for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent ensures a steady, above-market income stream without the need for extensive property management. On the other hand, for value-add buyers, the potential exists to renovate properties and command rents closer to the FMR, thereby maximizing returns while still benefiting from the stability of the Section 8 program.
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.