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 | $1,260 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,310 | $143,138 | 0.92% | C |
| 2BR | $1,560 | $212,300 | 0.73% | D |
| 3BR | $2,130 | $320,139 | 0.67% | D |
| 4BR | $2,180 | $428,263 | 0.51% | F |
| 5BR | $2,529 | $561,569 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 50263 is located within the city of Waukee, IA, which is characterized by a population of 29,611 residents. With 33.0% of the residents being renters, it suggests a balanced mix between homeowners and tenants. The area boasts a robust median income of $102,762, indicating a relatively affluent community. Correspondingly, the median home value stands at $337,629, reflecting the financial status of the inhabitants and the overall desirability of the location.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 50263 in fiscal year 2024 is set at $1,280. This figure represents the benchmark used by the Department of Housing and Urban Development (HUD) for determining the maximum rent that a Section 8 tenant can be charged. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), is significantly higher at $1,548. This disparity highlights an opportunity for landlords who can leverage the higher market rates while still participating in the Section 8 program.
Given these economic indicators, ZIP 50263 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the Section 8 program combined with the reasonable FMR provides a predictable income stream. Meanwhile, hands-on investors can explore ways to enhance property values and rents, capitalizing on the higher market rates while ensuring compliance with HUD standards. The affluent demographic and strong rental market make Waukee, IA, a promising investment location for those interested in Section 8 properties.
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.