Side-by-side comparison of Des Moines, IA and Iowa City, IA — cap rates, rent, prices, and investment metrics.
Cash flow: Des Moines has the edge with an estimated cap rate of 3.88% compared to Iowa City's 3.33%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $215,000 in Des Moines vs $245,000 in Iowa City, while rents come in at $1,180/mo and $1,200/mo respectively.
Growth & appreciation: Des Moines is growing faster at 0.7% annually vs Iowa City's 0.6%. Des Moines leads on home value appreciation at 2.7% per year.
Costs & risk: Property taxes are 1.52% in Des Moines vs 1.48% in Iowa City. Vacancy rates of 5.8% and 4.5% are both healthy, suggesting strong tenant demand in both markets.
Bottom line: Des Moines edges out Iowa City on most key metrics. While cap rates are moderate at 3.88%, Des Moines's overall profile is stronger. Use our free calculators to model specific deals in Des Moines or Iowa City.