Location: Des Moines-West Des Moines, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
The analysis of ZIP 50318 within the Des Moines-West Des Moines, IA HUD Metro FMR Area reveals several critical points for landlords and small-portfolio investors.
The Federal Market Rent (FMR) for ZIP 50318 in fiscal year 2024 is set at $1070. However, without specific data on market rents, it's challenging to definitively conclude if the rent math works. Typically, landlords should aim to have their rental income cover mortgage payments, property taxes, insurance, maintenance, and other operational costs. In the absence of market rent figures, the viability of the rent math cannot be fully assessed.
Regarding the affordability of acquisition, the data lacks specifics on the median home value, days on market (DOM), and the percentage of homes that required price cuts. These metrics are crucial for understanding the local real estate market dynamics and whether buying properties in this area would be financially prudent. Without these details, it's impossible to provide a clear assessment of the acquisition cost relative to potential returns.
Tenant demand in ZIP 50318 also remains uncertain due to the lack of specific population and renter share percentages. A high percentage of renters indicates strong demand for rental properties, which can be beneficial for landlords. Conversely, a low renter share might suggest a saturated market or difficulty in finding tenants. The absence of these figures makes it difficult to gauge the likelihood of securing long-term, stable tenancy.
Verdict: While the Federal Market Rent of $1070 provides a benchmark for landlords in ZIP 50318, the incomplete data on market rents, median home values, days on market, percentage of price cuts, and tenant demographics hinders a comprehensive analysis. To make informed decisions, landlords and investors should seek out detailed local market data to understand the financial feasibility and tenant demand accurately. Until such data is available, the investment potential in this area remains ambiguous.
Data Sources: FMR data from HUD (2027).
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.