Updated 2026 · Based on median market data for Des Moines, IA
Des Moines sits in the Midwest with a population of 214,133 growing at 0.7% annually. The median home costs $215,000 while rents average $1,180/mo, producing an estimated cap rate of 3.88%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
Des Moines works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.88% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $215,000 median — around $172,000 or less. At this price point with $1,180/mo rents, your cap rate improves to roughly 5.4%. Factor in 1.52% property taxes ($3,268/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.8% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,516.
Property taxes at 1.52% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Des Moines property using our cap rate calculator (pre-filled with Des Moines data). Compare Des Moines against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.