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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $223,191 | 0.42% | F |
| 3BR | $1,280 | $287,827 | 0.44% | F |
| 4BR | $1,520 | $354,884 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 50244, located in Slater, Iowa, within the Polk County and Des Moines-West Des Moines HUD Metro FMR area, reveals a favorable environment for investors seeking stable cash flow. The HUD Fair Market Rent (FMR) for the area is set at $970 for fiscal year 2024, while the Census American Community Survey (ACS) indicates an average market rent of $895. This means that voucher tenants will provide a positive cash flow when renting at the HUD FMR rate.
To further understand the investment potential, consider the median home value in the area, which stands at $289,892. By comparing the HUD FMR to the median home value, we can derive a rent-to-price ratio. At $970 per month, the annual rent comes to $11,640, resulting in a rent-to-price ratio of approximately 4%. This ratio suggests that rental income can be a significant portion of the total property value, making it attractive for investors focused on generating passive income through rental properties.
The dynamics between renting and buying in this market do not significantly impact the decision-making process due to the lack of data on median Days on Market (DOM) and the percentage of price cuts. However, given the positive cash flow from voucher tenants and the relatively low market rent compared to the HUD FMR, the focus should remain on the steady rental income rather than speculative gains from flipping properties.
The strongest investor angle in ZIP 50244 is cash flow. With the HUD FMR above the market rent and a favorable rent-to-price ratio, investors can expect consistent, positive cash flow from Section 8 tenants, providing a solid foundation for long-term investment success.
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.