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 Section 8 market analysis for ZIP code 50395 in Des Moines-West Des Moines, IA, reveals several key points that will be useful for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area is set at $1070 per month for fiscal year 2024. However, the market rent data for this zip code is currently unavailable, making it challenging to provide a direct comparison between the two figures.
To determine how well voucher tenants cashflow at the FMR, we need to consider the median home value, which is also not available for ZIP 50395. Without this information, deriving an accurate rent-to-price ratio is impossible. Nevertheless, the lack of market rent data suggests that the FMR may closely align with the actual rental prices in the area, potentially allowing for cashflow when renting to voucher tenants at the FMR rate. This assumption hinges on the idea that the FMR is designed to reflect the local rental market conditions.
The days on market (DOM) and price-cut share percentages are also unavailable, which means we cannot assess the typical time it takes for properties to sell or the frequency and extent of price reductions. These metrics would have been valuable in understanding the rent-versus-buy dynamics in the area, particularly for investors interested in flipping properties or assessing the stability of the housing market.
In summary, while specific market rent and median home value data are missing, the alignment of the HUD FMR with likely local rental rates indicates that voucher tenants can cashflow at the FMR rate. The strongest investor angle in this scenario appears to be cashflow, given the absence of higher market rents that might otherwise necessitate premium units or significant price cuts to remain competitive.
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.