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Cedar Rapids vs Des Moines for Rental Property Investing

Side-by-side comparison of Cedar Rapids, IA and Des Moines, IA — cap rates, rent, prices, and investment metrics.

Cedar Rapids wins 5–2 across key metrics
Cedar Rapids leads on cash flow (4.16% vs 3.88% cap rate) · Des Moines leads on population growth
Metric
Cedar Rapids, IA
Des Moines, IA
Est. Cap Rate
4.16%
3.88%
Median Home Price
$185,000
$215,000
Median Monthly Rent
$1,050
$1,180
1% Rule
0.57%
0.55%
GRM
14.7x
15.2x
Price / Income
3.3x
3.8x
Property Tax Rate
1.48%
1.52%
Vacancy Rate
5.5%
5.8%
Population Growth
0.4% / yr
0.7% / yr
Annual Appreciation
2.3%
2.7%
Population
137,710
214,133
Median Income
$56,800
$56,200

Cedar Rapids vs Des Moines: Which Is Better for Investors?

Cash flow: Cedar Rapids has the edge with an estimated cap rate of 4.16% compared to Des Moines's 3.88%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $185,000 in Cedar Rapids vs $215,000 in Des Moines, while rents come in at $1,050/mo and $1,180/mo respectively.

Growth & appreciation: Des Moines is growing faster at 0.7% annually vs Cedar Rapids's 0.4%. Des Moines leads on home value appreciation at 2.7% per year.

Costs & risk: Property taxes are 1.48% in Cedar Rapids vs 1.52% in Des Moines. Vacancy rates of 5.5% and 5.8% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Cedar Rapids edges out Des Moines on most key metrics. While cap rates are moderate at 4.16%, Cedar Rapids's overall profile is stronger. Use our free calculators to model specific deals in Cedar Rapids or Des Moines.

Cedar Rapids, IA
4.16% cap rate · $185,000 median · $1,050/mo
Full analysis →
Des Moines, IA
3.88% cap rate · $215,000 median · $1,180/mo
Full analysis →
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