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 | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $168,802 | 0.68% | D |
| 3BR | $1,550 | $257,304 | 0.6% | D |
U.S. Census Bureau data (2024)
ZIP 50233, located in Redfield, IA, within the Des Moines-West Des Moines, IA HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 stands at $1130, significantly higher than the market rent of $832. This spread ensures that properties in this ZIP code can generate steady, above-market rental income when leased through the Section 8 program.
The median home value in ZIP 50233 is $217,699, which is relatively low compared to other areas, making it an attractive option for investment. However, the primary appeal lies in the guaranteed rental income from the Section 8 program, which helps stabilize cash flow and reduce financial risk associated with market fluctuations.
The higher FMR compared to market rent means that landlords can rely on a consistent revenue stream without the volatility often seen in purely market-driven investments. This ZIP code does not present opportunities for significant appreciation, as there is no notable percentage for price-cut share or days on market (DOM), indicating a stable but not rapidly growing housing market.
ZIP 50233 also lacks characteristics of a diversifier, with a renter share of only 9.6%. This low percentage suggests that most residents are homeowners rather than renters, reducing the potential for broadening a property portfolio across different types of tenants. Additionally, the median income of $78,984 does not indicate a high demand for subsidized housing, though it still supports the viability of Section 8 tenancy.
In summary, ZIP 50233 is best suited as a cash-flow anchor due to the substantial difference between the FMR and market rent, ensuring reliable income generation for landlords participating in the Section 8 program.
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.