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 | $1,080 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $252,438 | 0.53% | F |
| 3BR | $1,820 | $343,320 | 0.53% | F |
| 4BR | $1,860 | $401,028 | 0.46% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 50321 in Des Moines, IA, under the Section 8 program are significant. Tenant turnover poses a notable challenge, with market rents at $1,084 compared to the Fair Market Rent (FMR) of $1,110 for fiscal year 2024. This indicates that tenants might be more likely to move when they find higher-paying jobs or other housing options, leading to frequent vacancies. The vacancy exposure is heightened due to the lack of available data on days on market (DOM), which suggests uncertainty in how quickly properties can be rented out. Additionally, the deferred-maintenance exposure is substantial, considering the typical home value of $354,541 and the median income of $80,351. Landlords must be prepared to invest in maintenance without relying on significantly higher rental income to cover these costs.
However, these risks are balanced by the high density of renters in the area. With 40.2% of the population being renters, there is a strong likelihood of consistent demand for rental properties, particularly those accepting Section 8 vouchers. High renter concentration often translates into greater competition among tenants for available units, potentially stabilizing occupancy rates despite the challenges mentioned.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.