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 | $1,070 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $179,601 | 0.73% | D |
| 3BR | $1,800 | $269,868 | 0.67% | D |
| 4BR | $1,850 | $320,405 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP code 50320, located in Des Moines, IA, is part of the larger Des Moines-West Des Moines, IA HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 50320 in fiscal year 2024 is set at $1,050, which is notably lower than the market rent of $1,284. This indicates that the area is slightly undervalued when it comes to rental pricing compared to the actual market conditions.
The median home value in ZIP 50320 is $260,734, which is consistent with the typical range observed in other ZIP codes within the Des Moines-West Des Moines metro. However, the 26.5% renter share in this ZIP code stands out as a significant factor. In comparison to the broader metro area, where the renter share is generally lower, this higher percentage suggests a stronger demand for rentals in 50320.
Given the lower FMR relative to market rent, combined with the above-average renter share, ZIP 50320 can be considered a value pocket within the Des Moines-West Des Moines metro. Landlords and small-portfolio investors should take note of the discrepancy between the FMR and market rent, as it presents an opportunity to offer affordable housing options while still maintaining competitive rental prices.
The higher renter share also points towards a potential concentration of renters who might benefit from Section 8 assistance. This makes ZIP 50320 a particularly attractive area for those interested in participating in the Section 8 program, given the alignment between the FMR and the needs of a substantial portion of the local rental market.
In summary, ZIP 50320 offers a unique combination of affordability and demand that positions it as a valuable investment opportunity for those looking to engage in the rental market within the Des Moines-West Des Moines metro. The specific figures indicate a market where rental properties can be priced competitively, attracting both subsidized and market-rate tenants.
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.