Location: Des Moines County, IA | Metro: Des Moines County, IA
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 | $1,040 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,950 | $342,168 | 0.57% | F |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 52650 for Section 8 properties, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $1,380. For a property valued at $316,888, determine if this rent can cover the debt service. If the DSCR is less than 1, meaning the income does not cover the expenses, then the answer is No. If it meets or exceeds 1, proceed to the next step.
Step 2: Market Rent Comparison
The Census ACS reports the average market rent in ZIP 52650 to be $1,302. Compare this figure to the FMR of $1,380. If market rent is below the FMR, which it is in this case, you can expect that Section 8 tenants will be willing to pay the higher subsidized rate, leading to a Yes for investment suitability. If market rent were above the FMR, it would indicate a potentially less favorable situation for Section 8 properties.
Step 3: Demand Assessment
In ZIP 52650, 15.9% of residents are renters. However, the Days on Market (DOM) data is not available, making it difficult to assess how quickly rental units are typically occupied. Despite this missing information, the percentage of renters suggests there is demand for rental housing. Given that the market rent is below the FMR, there is an incentive for potential tenants to seek out Section 8 properties, leading to a Yes on the demand front. Nonetheless, the lack of DOM data introduces some uncertainty into the assessment.
Conclusion
If the FMR of $1,380 clears the debt service on a property valued at $316,888, and given that the market rent is below this figure, along with a significant portion of residents being renters, investing in ZIP 52650 for Section 8 properties appears to be a viable option. However, the absence of DOM data means that while the overall scenario looks positive, the speed at which units can be leased remains unknown. This leads to an overall decision of Yes, but with the caveat that it depends on the landlord's tolerance for uncertainty regarding the leasing process.
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.