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 | $960 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $990 | $108,547 | 0.91% | C |
| 2BR | $1,180 | $145,489 | 0.81% | C |
| 3BR | $1,610 | $178,715 | 0.9% | C |
| 4BR | $1,650 | $197,921 | 0.83% | C |
| 5BR | $1,914 | $212,329 | 0.9% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 50316, located in Des Moines, Iowa, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $970, slightly above the market rent of $952 reported by the Census American Community Survey (ACS).
This means that voucher tenants will generally cashflow at the HUD FMR, providing a positive net income for landlords. However, the margin is slim, suggesting that landlords must manage their properties efficiently to cover maintenance and other costs.
The median home value in the area is $162,509, leading to a rent-to-price ratio of approximately 5.97%. This ratio indicates that the rental market is relatively aligned with the housing market, offering stability for both renters and buyers.
Notably, the data shows a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, which suggests that the buy market is not particularly active compared to the rental market. This further supports the idea that rental properties are a more attractive option for investors in this area.
The strongest investor angle in ZIP 50316 is likely to be cashflow due to the slight premium offered by the HUD FMR over the market rent, combined with the stability provided by the local housing 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.