Location: Clarke County, 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 | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $300,416 | 0.47% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 50257 hinges on a detailed analysis of its financial metrics, specifically focusing on yield and stability. Yield is determined by comparing the Fair Market Rent (FMR) of $970 against the market rent of $1,063 for fiscal year 2024. Additionally, the median home value of $289,188 plays a role in assessing the potential for rental income relative to property costs.
On the axis of yield, ZIP 50257 leans towards a moderate opportunity. The FMR is notably lower than the market rent, indicating that landlords can potentially charge above the fair market rate, thereby increasing their profit margins. However, the significant home value suggests that property acquisition costs are high, which could dilute the overall yield if not managed properly.
Regarding stability, the figures are less conclusive. With only 11.0% of residents being renters, the market shows a preference for homeownership, which could indicate lower demand for rentals. The average daily days on market (DOM) is not available, which is a critical metric for understanding how quickly properties can be leased. Lastly, the median household income of $94,375 suggests that tenants have a reasonable ability to pay rent, contributing positively to the stability of cash flows.
In summary, ZIP 50257 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it presents a scenario where landlords can achieve higher yields through market rents but must contend with a lower percentage of renters and potentially longer leasing periods. The strong income figure provides a foundation for stable cash flows, albeit at a smaller scale due to the limited rental population. For small-portfolio investors, this ZIP code offers a balanced approach, requiring careful consideration of both the upside in rental rates and the downside in market saturation.
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.