Location: Des Moines-West Des Moines, 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 | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $278,939 | 0.33% | F |
| 3BR | $1,270 | $368,923 | 0.34% | F |
| 4BR | $1,300 | $487,148 | 0.27% | F |
| 5BR | $1,508 | $620,558 | 0.24% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP code 50226 in Polk City, IA, under the Section 8 program are significant. Tenant turnover is a critical issue, with market rents at $1,045 compared to the Fair Market Rent (FMR) of $1,220 for FY 2024. This discrepancy can lead to tenants seeking higher rental subsidies through Section 8, increasing the likelihood of frequent moves and associated costs. Vacancy exposure is another concern, as the days on market (DOM) data is not available, making it difficult to predict how long properties might remain vacant between tenancies. Additionally, the typical home value in the area is $427,479, while the median income is $153,011, which suggests that many homeowners may have deferred maintenance due to financial constraints. This can translate into higher repair and maintenance costs for landlords.
Despite these challenges, there are several factors that mitigate the risks. The renter share in the area is 10.5%, indicating a relatively high concentration of renters. High renter density often correlates with increased demand for housing vouchers, such as those offered by Section 8. This can provide a steady stream of qualified tenants, reducing the overall risk of vacancy and ensuring a consistent income stream.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 50226 is moderate.
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.