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 | $980 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $315,425 | 0.38% | F |
| 3BR | $1,650 | $480,193 | 0.34% | F |
| 4BR | $1,690 | $715,841 | 0.24% | F |
| 5BR | $1,960 | $947,469 | 0.21% | F |
U.S. Census Bureau data (2024)
ZIP 50216, located in Panora, IA, within the Des Moines-West Des Moines, IA HUD Metro FMR area, serves as an effective cash-flow anchor for a Section 8 portfolio strategy. This designation is based on the favorable spread between the Fair Market Rent (FMR) and the market rent, as well as the median home value.
The FMR for ZIP 50216 in fiscal year 2024 is set at $1000, while the average market rent stands at $1,102. This indicates that properties in this ZIP code can be rented out at a rate slightly above the government's subsidy, ensuring positive cash flow for landlords participating in the Section 8 program. The difference of $102 per unit allows for a modest profit margin, which is crucial for maintaining financial stability within a rental portfolio.
Moreover, the median home value in ZIP 50216 is $482,050. Given the relatively high median home value, it suggests that the area is stable and has a low risk of property devaluation. This stability is beneficial for landlords who are looking to protect their investment and ensure long-term viability.
In conclusion, ZIP 50216 is best suited as a cash-flow anchor due to the positive spread between the FMR and market rent. This strategy allows landlords to secure steady income while minimizing the risk associated with property depreciation. It is a reliable choice for those aiming to balance their portfolios with safe, income-generating assets.
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.