Section 8 Fair Market Rent (FMR) for ZIP 50240 - 2027

Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area

Investment Score for ZIP 50240

F
Monthly Rent (2BR)
$1,090
Median Price (2BR)
$331,919
1% Rule
0.33%
Annual Yield
3.94%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$880
1 Bedroom$920
2 Bedrooms$1,090
3 Bedrooms$1,490
4 Bedrooms$1,520
5 Bedrooms$1,763
6 Bedrooms$1,975
7 Bedrooms$2,133
8 Bedrooms$2,240

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,090 $331,919 0.33% F
3BR $1,490 $411,590 0.36% F
4BR $1,520 $519,837 0.29% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
2,393
Median Household Income
$107,563
Housing Units
915
Renter Percentage
13.2%
Occupancy Rate
94.1%
Renter Occupied
114

The ZIP code 50240, located in Saint Charles, Iowa, stands out within Madison County due to its unique demographic and economic profile. With a total population of 2,393 residents, only 13.2% are renters, indicating a predominantly owner-occupied community. The median income for residents is $107,563, which is notably higher than the national average, reflecting a relatively affluent area. Additionally, the median home value of $398,012 is significantly above the national median, suggesting that homeownership is a strong indicator of financial stability in this region.

When it comes to Section 8 vouchers, the data reveals an interesting dynamic. The Fair Market Rent (FMR) for ZIP 50240 in fiscal year 2024 is set at $970, while the actual market rent, according to Census ACS data, is $855. This means that landlords accepting Section 8 vouchers can expect a slight premium over the typical rental rates in the area. However, the low percentage of renters indicates that the demand for rental properties, including those supported by Section 8 vouchers, may be limited.

Given the data signature, ZIP 50240 appears to be stable rather than transitional. The high median income and median home values suggest a community where most residents are financially secure and likely to remain so. The modest rental market, combined with the slightly higher FMR, implies that while there is potential for some growth in the rental sector, it is unlikely to become a significant portion of the housing market. Landlords should carefully consider the balance between the potential benefits of higher rents through Section 8 vouchers and the possibility of lower demand for rental units in this area.

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.