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 | $1,330 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $139,641 | 0.99% | C |
| 2BR | $1,640 | $204,992 | 0.8% | C |
| 3BR | $2,240 | $332,492 | 0.67% | D |
| 4BR | $2,290 | $459,352 | 0.5% | F |
| 5BR | $2,656 | $607,909 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 50266 is located in West Des Moines, IA, a suburban area known for its blend of residential and commercial spaces. The neighborhood is characterized by a diverse mix of housing types, including single-family homes and apartments, catering to a wide range of residents. With a total population of 37,523, nearly half (50.2%) of the residents are renters, indicating a strong demand for rental properties in the area. The median household income stands at $87,025, reflecting a relatively affluent community. This economic stability is further supported by the median home value of $332,333, suggesting a robust local real estate market.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 50266 for fiscal year 2024 is set at $1,330, which is slightly below the Zillow Observed Rent Index (ZORI) of $1,356. This indicates that while Section 8 vouchers can cover a significant portion of the rent, there is still a gap between the voucher amount and the market rate, which could be an important consideration for landlords and small-portfolio investors.
The place fits well for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable rental demand and the close alignment between FMR and market rents provide a predictable revenue stream. However, for those looking to actively manage their investments, the slight disparity between the voucher amount and market rent offers opportunities to increase property values through renovations or improvements, thereby capturing higher rents when the units cycle out of the voucher program.
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.