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 | $1,020 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,060 | $110,971 | 0.96% | C |
| 2BR | $1,260 | $156,013 | 0.81% | C |
| 3BR | $1,720 | $214,113 | 0.8% | C |
| 4BR | $1,760 | $258,965 | 0.68% | D |
| 5BR | $2,042 | $332,386 | 0.61% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 50317 in Des Moines, IA, on the axes of yield and stability reveals a moderate investment opportunity. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1020, while the market rent stands at $1,233. This suggests that properties in this area can command a premium over the FMR, indicating a decent yield potential. However, the median home value of $191,280 means that the initial capital outlay will be relatively high, which affects the overall return on investment.
On the stability axis, the data points to a balanced but not highly stable market. With 27.5% of residents being renters, there is a significant portion of the population that could potentially seek housing through rental properties. The days on market (DOM) average of 47 days is relatively low, suggesting that rental units are typically occupied quickly once they become available. This quick turnover can be seen as positive for maintaining cash flow. However, the median household income of $65,617 is a key figure that indicates the financial capacity of tenants to consistently pay higher rents. While it supports the ability to charge closer to market rates, it also introduces some risk if the local economy experiences downturns.
Given these factors, ZIP 50317 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents an investment scenario where landlords and small-portfolio investors can achieve a reasonable yield by charging near-market rents. However, the stability is somewhat compromised by the median income level and the percentage of renters, which suggests that while cash flow is likely to be consistent, it may not be as robust as in areas with higher incomes or a larger proportion of renters. Thus, the investment in this ZIP code would be best described as offering a middle-ground opportunity, providing a balance between yield and stability.
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.