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 | $1,030 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,070 | $135,284 | 0.79% | D |
| 2BR | $1,270 | $191,688 | 0.66% | D |
| 3BR | $1,730 | $248,565 | 0.7% | D |
| 4BR | $1,780 | $294,826 | 0.6% | D |
| 5BR | $2,065 | $322,982 | 0.64% | D |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 50310 of Des Moines, IA, presents several challenges for landlords and small-portfolio investors considering Section 8 properties. Firstly, tenant turnover poses a significant risk. The market rent in this area stands at $1,002, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,080. This discrepancy suggests that tenants might be drawn to the higher rental assistance provided by Section 8, only to leave when they find more affordable housing options elsewhere, leading to frequent turnovers.
Vacancy exposure is another concern. With an average Days on Market (DOM) of 54 days, landlords may face extended periods without rental income while waiting for a new tenant. This delay can significantly impact cash flow and profitability, especially if the property remains vacant longer than expected.
Deferred maintenance is a critical issue, given the typical home value of $233,271 and a median household income of $76,381. Landlords must be prepared to invest in necessary repairs and maintenance, which can be costly relative to the income generated by the property. This financial burden can reduce overall returns and increase the operational complexity of managing the property.
Despite these risks, there are factors that mitigate the potential downsides. The renter share in ZIP 50310 is notably high at 30.4%, indicating a dense population of renters. This high concentration of renters often correlates with increased demand for Section 8 vouchers, which can stabilize occupancy rates and ensure a steady stream of rental income through the program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.