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 | $970 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $186,682 | 0.64% | D |
| 3BR | $1,640 | $246,701 | 0.66% | D |
| 4BR | $1,680 | $281,576 | 0.6% | F |
| 5BR | $1,949 | $289,536 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 50311 is located in Des Moines, IA, and represents a neighborhood with a significant rental market presence. With a total population of 14,574, over half—51.6%—are renters, indicating a strong demand for rental properties. The median household income in this area is $61,957, which suggests a middle-class community capable of supporting a diverse range of housing options. The median home value stands at $226,968, reflecting an affordable yet stable housing market.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 50311 in fiscal year 2024 is set at $970. This figure is notably higher than the market rent, measured by Zillow's ZORI index, which currently sits at $939. For hands-off voucher operators, the higher FMR means that properties in this ZIP can be leased to tenants receiving Section 8 assistance at rates above the market average, providing a buffer against potential market fluctuations.
However, for hands-on value-add buyers, the difference between the FMR and market rent offers an opportunity to improve property quality and potentially command rents closer to the FMR. Given the neighborhood's demographics and the current economic landscape, there is a clear distinction between the two rent metrics, suggesting a viable market for both types of investors. Hands-off operators will benefit from steady, above-market rents, while value-add buyers can leverage improvements to capture a slightly higher rent premium.
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.