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 | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,090 | $120,739 | 0.9% | C |
| 2BR | $1,290 | $154,626 | 0.83% | C |
| 3BR | $1,760 | $212,979 | 0.83% | C |
| 4BR | $1,800 | $249,929 | 0.72% | D |
| 5BR | $2,088 | $273,639 | 0.76% | D |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 50313, located in Des Moines, IA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for 2024 in this area is set at $1100, while the Zillow Observed Rental Index (ZORI) indicates that the market rent stands at $1165. This means there is a $65 difference, representing approximately 5.9% of the market rent.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must be aware of the financial implications of accepting housing vouchers. While vouchers guarantee timely payments, the rental rate is capped at the FMR, which is $65 below the open-market rate. This discrepancy can affect overall yield and profitability, especially when considering the broader economic context of Des Moines, IA.
In Des Moines, where 23.1% of residents are renters, the median home value is $185,265 and the median income is $68,361. These figures suggest that the local economy supports a mix of homeowners and renters, with a substantial portion of the population relying on rental properties. For landlords, the decision to participate in the Section 8 program should weigh the benefits of guaranteed income against the potential loss of revenue from renting at below-market rates.
To illustrate, if a landlord has a property that could rent for $1165 on the open market but accepts a Section 8 tenant paying $1100, the annual shortfall would amount to $780 ($65 per month). This reduction in rental income must be considered alongside other factors such as maintenance costs, vacancy rates, and the overall demand for affordable housing in Des Moines.
While the Section 8 program offers stability and a reliable tenant base, the financial analysis for ZIP 50313 shows that landlords could potentially earn more by renting to non-voucher tenants at the prevailing market rate. However, the decision also depends on the landlord's investment goals and their tolerance for risk in the rental market.
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.