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 | $121,225 | 0.9% | C |
| 2BR | $1,290 | $164,035 | 0.79% | D |
| 3BR | $1,760 | $208,799 | 0.84% | C |
| 4BR | $1,800 | $233,037 | 0.77% | D |
| 5BR | $2,088 | $262,758 | 0.79% | D |
U.S. Census Bureau data (2024)
The ZIP code 50315, located in Des Moines, IA, serves as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the spread between the Fair Market Rent (FMR) set by HUD for the Des Moines-West Des Moines, IA HUD Metro FMR area, which is $1020 for fiscal year 2024, and the current market rental rates, which stand at $1,113. Given the median home value in the area is $193,670, landlords can expect stable cash flows due to the consistent demand for affordable housing.
While the market rental rate is slightly higher than the FMR, the difference is minimal, ensuring that properties in ZIP 50315 will not be subject to significant price fluctuations. The low price-cut share of 0.3%, indicating that few properties need to reduce their asking price to attract tenants, further supports the stability of this market. Additionally, the average Days on Market (DOM) of 52 days suggests a healthy balance between supply and demand, with properties typically renting out relatively quickly.
The median income of $60,590 in ZIP 50315 also plays a crucial role in maintaining a steady stream of Section 8 eligible tenants. With a renter share of 38.5%, there is a substantial portion of the population seeking rental housing, making it less likely that landlords will face vacancies. Moreover, the recent rental market trend data shows that the average rent for two-bedroom apartments in 50315 ranges from $650 to $3,141, with an average of $1,333. This aligns closely with the FMR and market rates, reinforcing the predictability of cash flows.
In conclusion, ZIP 50315 offers a reliable foundation for a Section 8 portfolio due to its stable rental market and consistent demand for affordable housing. Landlords can expect steady cash flows with little risk of vacancy, making it an ideal choice for those looking to anchor their investment strategy.
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.