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 | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $233,139 | 0.55% | F |
| 3BR | $1,760 | $301,842 | 0.58% | F |
| 4BR | $1,800 | $403,923 | 0.45% | F |
| 5BR | $2,088 | $563,726 | 0.37% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,090 for ZIP 50211 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $341,572. To address this, let's consider the typical mortgage scenario. A home priced at $341,572 with a 20% down payment would require a mortgage of approximately $273,257. Assuming a 30-year fixed-rate mortgage at a current average rate of around 5%, the monthly mortgage payment would be roughly $1,450. This is higher than the FMR, indicating that the FMR alone may not cover the mortgage expenses.
The investor could also argue that the rental demand at 15.7% of the population renting in Norwalk, IA, might not be sufficient. However, the data shows that there are 275 homes for sale and several rental listings available. While the rental demand percentage is relatively low, the presence of multiple rental listings suggests that there is still a viable market for rental properties. Additionally, the average rent in this area is $1,180, which aligns closely with the FMR and indicates a stable rental market.
Another concern might be whether housing vouchers will keep pace with the market rents of $1,282. According to HUD's Housing Choice Voucher (HCV) Data Dashboard, the trend is towards increasing assistance levels, but specific figures for Norwalk, IA, are not readily available. It is important to note that voucher amounts can vary widely based on individual needs and local market conditions. While the data does not provide a direct comparison, it is generally true that voucher amounts tend to lag behind market rents, especially in areas with rapidly appreciating home values. Therefore, while vouchers can help mitigate some of the rent burden, they may not fully cover the market rents in ZIP 50211.
In summary, while the FMR of $1,090 may not fully cover the mortgage on a $341,572 home, the rental market in Norwalk, IA, appears to be stable with an average rent close to the FMR. Vouchers are likely to help, but may not fully meet the current market rents of $1,282. Investors should carefully consider these factors before making decisions regarding property investments in ZIP 50211.
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.