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 | $1,060 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,780 | $240,912 | 0.74% | D |
U.S. Census Bureau data (2024)
The rent math for ZIP 50243 does not work favorably for landlords. The Fair Market Rent (FMR) set by HUD for the fiscal year 2024 is $1110. However, the market rent is listed as N/A, indicating that there is either insufficient data or that market rents are below the FMR, which would make it difficult to cover operational costs at the HUD rate.
Acquisition in ZIP 50243 is moderately affordable. The median home value stands at $224,383, making it a reasonable investment for those looking to enter the market. Unfortunately, the data on days on market (DOM) and the percentage of homes requiring price cuts are not available, which limits our ability to fully assess the ease of acquiring properties. Despite this, the median home value suggests that purchasing homes could be within reach for many investors.
Tenant demand in ZIP 50243 is relatively low. With a total population of 361 and only 7.0% of residents being renters, there is limited interest in rental properties. This low demand could translate into fewer potential tenants, making it harder to fill vacancies and maintain steady cash flow.
In conclusion, while the acquisition cost in ZIP 50243 is reasonably affordable at a median home value of $224,383, the rent math does not favor landlords due to the unavailability of market rent data, suggesting it might be lower than the HUD FMR of $1110. Furthermore, the low tenant demand with a mere 7.0% renter share out of a small population of 361 residents makes this area less attractive for investment. Landlords and small-portfolio investors should consider these factors carefully before committing to property acquisitions in this ZIP code.
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.