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 | $1,450 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $236,996 | 0.76% | D |
| 3BR | $2,440 | $355,309 | 0.69% | D |
| 4BR | $2,500 | $482,832 | 0.52% | F |
| 5BR | $2,900 | $633,651 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 50323, located in Urbandale, Iowa, within Polk County, operate under specific guidelines. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1350. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code. It's important to note that the local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,451.
A landlord participating in the Section 8 program should understand how the total reimbursement is calculated. The voucher does not cover the entire rent; instead, it covers the difference between the SAFMR and the tenant's portion, which is typically 30% of their income. If we assume an average tenant income that results in a 30% contribution, the tenant would pay approximately $405 towards rent, leaving the remaining $945 to be covered by the voucher. However, since the SAFMR is $1350, the voucher would reimburse the landlord up to this amount, not exceeding $1350 regardless of the actual rent charged.
Beyond rent, the voucher also includes utility allowances. These vary based on the number of bedrooms and other factors but are designed to help cover the cost of utilities such as electricity, gas, and water. For a two-bedroom apartment, the utility allowance can range from $300 to $400 annually, depending on the specifics of the contract and the area's average utility costs.
To summarize, if you charge $1451 for a two-bedroom unit, the voucher would only cover up to $1350. With the tenant paying around $405, the total reimbursement would be $1350, creating a gap of $101 per month ($1451 - $1350). This means that landlords in ZIP 50323 accepting Section 8 vouchers would face a shortfall of $101 each month compared to the local market rent. Conversely, if you set your rent at the SAFMR level of $1350, you would receive full reimbursement without any gap, ensuring steady cash flow aligned with the program's limits.
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.