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 | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $274,806 | 0.48% | F |
| 3BR | $1,790 | $355,864 | 0.5% | F |
| 4BR | $1,830 | $482,285 | 0.38% | F |
| 5BR | $2,123 | $627,416 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 50325, located in Clive, Iowa, presents a unique balance between yield and stability for real estate investors. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,100, which is slightly above the market rent of $1,073. This indicates a modest opportunity for higher rental income compared to the average market rates. However, when considering the median home value of $428,777, the potential return on investment appears relatively low, suggesting that while there is some upside in rental income, it does not significantly outweigh the capital investment required.
Moving to the stability axis, the ZIP code shows a 24.6% rate of renters, indicating a moderate level of demand for rental properties. The days on market (DOM) for properties is 37 days, which is fairly quick and suggests that once a property is listed, it can be leased out without much delay. Additionally, the median household income is $132,121, which is quite robust and implies a stable tenant base capable of consistently paying rent.
Given these figures, ZIP 50325 does not fall into the high-yield/low-stability category typically associated with 'flip-style' markets. Instead, it represents a steady-cashflow zone. The slight edge in FMR over market rates combined with a strong median income supports the idea that rental income will be reliable and consistent. The moderate rental demand and quick DOM suggest that finding tenants won't be overly challenging, but neither is it indicative of a highly competitive, speculative market.
To summarize, the analysis points to a stable investment environment where landlords and small-portfolio investors can expect reasonable returns on their investments without significant risk. The figures support a strategy focused on long-term, steady cash flow rather than short-term, high-risk opportunities.
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.