Location: Ames, 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 | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $191,746 | 0.54% | F |
| 3BR | $1,450 | $244,407 | 0.59% | F |
| 4BR | $1,750 | $318,149 | 0.55% | F |
| 5BR | $2,030 | $407,684 | 0.5% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50201 in Nevada, Iowa, for fiscal year 2024 is set at $890. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It's important to note that this does not mean you will receive $890 as your monthly rent; rather, it's the maximum amount that can be paid by the housing authority on behalf of the tenant.
In comparison, the average rent for the same area, based on Census American Community Survey data, is $963. This indicates that the market rent is slightly higher than the FMR, which could influence your decision to participate in the program.
The local renter share is 25.0%, meaning one-quarter of the households in the area are renters. This suggests there is a consistent demand for rental properties, especially those affordable under the Section 8 program. Given the FMR, tenants should be able to find your property within their budget, making it an attractive option.
If you're considering acquiring a new rental property in this area, the median home value is $242,007. This provides a benchmark for potential purchase prices. However, keep in mind that the actual cost of a property can vary significantly depending on its condition and location.
Before deciding to enter into a Section 8 contract, verify that the property meets all the necessary inspection criteria set by the local housing authority. This ensures compliance and avoids delays or rejections due to non-compliance with safety and maintenance standards.
In summary, the FMR of $890 for ZIP 50201 offers a clear guideline for landlords interested in the Section 8 program. With a market rent of $963 and a significant portion of the population renting, there is a good chance your property will attract interested tenants. Ensure the property meets the required standards to avoid complications.
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.