Location: Des Moines County, IA | Metro: Des Moines County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 52660 might question whether the Fair Market Rent (FMR) of $1,050 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a property. While the data does not provide specific mortgage amounts for homes in ZIP 52660, it's important to note that FMRs are established to ensure that housing costs are affordable for low-income households. This implies that the median home price in the area should be aligned with these rent levels, making it possible to find properties whose mortgages can be covered by this FMR.
A second concern could be the relatively low percentage of renters at 34.5%. However, this figure represents the portion of the population that is already renting, which is a key metric for understanding the existing demand. To fully assess the potential market, one must also consider the vacancy rate and the average number of bedrooms per rental unit. A higher vacancy rate might indicate that there is room for more rental units without significantly impacting rent prices. Additionally, if the average number of bedrooms per rental unit is high, it suggests that there could be opportunities to subdivide larger units into smaller, more affordable ones, thereby increasing the overall rental stock and potentially attracting more tenants.
The final objection pertains to whether voucher holders will keep pace with the market rents. The data does not specify the exact amount of vouchers available or their average value in ZIP 52660. However, it's crucial to understand that voucher programs are designed to adjust to local market conditions, ensuring that they remain effective in assisting low-income families in finding suitable housing. If the FMR is set at $1,050, it's likely that the voucher program has been calibrated to reflect this cost, though the specifics would need to be verified through additional sources.
In summary, while some data points are missing, such as specific mortgage amounts and detailed voucher information, the provided FMR and rental percentages offer a solid foundation for evaluating the viability of investing in ZIP 52660. The FMR is intended to be a realistic estimate of what low-income households can afford, suggesting that it should be possible to find properties that fit within this range. The rental demand, though seemingly low, requires further investigation into vacancy rates and unit sizes to determine if there is untapped potential. Lastly, the voucher system is generally adjusted to local market conditions, although specific details would require additional research.
Data Sources: FMR data from HUD (2027). 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.