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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $207,836 | 0.46% | F |
| 3BR | $1,300 | $285,266 | 0.46% | F |
| 4BR | $1,340 | $330,010 | 0.41% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 50169 (Mitchellville, IA) can cover the mortgage on a home priced at $276,991. The median household income in Mitchellville is $83,938, which is slightly above the median income for the city but lower than surrounding areas. This indicates that while the FMR is designed to ensure affordability, it may still be challenging to cover mortgage payments without considering other factors such as property taxes and insurance. For a home priced at $276,991, the monthly mortgage payment would depend on the interest rate and loan term, but it’s important to note that the FMR is intended to reflect the local rental market and not necessarily cover all expenses associated with homeownership.
The rental vacancy rate of 17.6% raises concerns about the availability of renters willing to pay market rates. However, the presence of a significant number of Section 8 voucher users suggests a stable demand for affordable housing. Mitchellville Park Apts, located in the ZIP code, offers 24 Section 8 housing units, indicating a strong need for subsidized housing. Despite the higher vacancy rate, the demand for affordable housing through Section 8 vouchers should help maintain a consistent tenant base.
Another objection could be whether the Section 8 voucher amount will keep up with the market rent of $809. The data does not provide a direct comparison between past and present voucher amounts and market rents, so it's important to monitor both trends closely. If the voucher amount is consistently below the market rent, landlords may need to consider additional sources of income or adjustments to their investment strategy. The median household income in ZIP 50169 is $83,938, which means that many families rely on subsidies to afford housing. Therefore, keeping pace with market rents through voucher adjustments is critical for maintaining profitability.
In summary, while the FMR and rental vacancy rate in Mitchellville, IA (ZIP 50169) present challenges, the strong demand for Section 8 housing and the presence of voucher users can mitigate some risks. Landlords should carefully assess their financial situation and consider the broader economic context before making investment decisions.
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.