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Rental property in Des Moines, IA

2026 Market Data & Investment Analysis

Gross Yield

6.5%

Annual rent / price

Median Home Price

$220,000

As of 2026-Q1

Median Monthly Rent

$1,200

Per month

Population

214,133

+0.5% / yr (5y avg)

Estimates based on median market data. Actual returns depend on your specific property. Source: Redfin / Zillow / U.S. Census Bureau, 2026-Q1.

Calculate your rental yield in Des Moines

Pre-filled with Des Moines's median values. Adjust to match your specific property.

Property Details

$

Total acquisition cost before taxes

$
$

HOA, insurance, property management

%

% of time the property is empty

%

% of purchase price (e.g. 2% = 2)

% of price

Rule of thumb: 1% of purchase price/yr

Results

Gross Rental Yield

6.55%

Net Rental Yield

4.13%

Cap Rate

4.13%

Monthly Cash Flow

$756.67

Annual Cash Flow

$9,080.00

> 6% — Excellent4–6% — Good< 4% — Low

Des Moines rental market at a glance

Median Home Price — 5-Year Trend

2021
$185,000
2022
$240,000
2023
$230,000
2024
$225,000
2025
$220,000

Median Monthly Rent — 5-Year Trend

2021
$1,000
2022
$1,120
2023
$1,170
2024
$1,190
2025
$1,200

Des Moines provides solid rental yields of 6.5%, in line with healthy investment market benchmarks.

Modest population growth of 0.5% per year indicates a stable but slowly growing rental market.

The vacancy rate of 5.5% is healthy, indicating strong rental demand and limited downtime between tenants.

What type of investment market is Des Moines?

Cash Flow Market

Des Moines is a cash flow-focused market where high rental yields can generate strong monthly income. Lower population growth means price appreciation may be limited, making this primarily an income play.

✓ Strengths

  • •High gross yield of 6.5% supports strong monthly cash flow
  • •Lower entry prices relative to rents reduce upfront capital needed
  • •Income-driven returns are less dependent on market timing

! Risks

  • •Limited price appreciation potential reduces total return
  • •Modest population growth limits long-term demand growth

Key Metrics

Gross Yield6.5%
Median Home Price$220,000
Median Monthly Rent$1,200
Population Growth+0.5% / yr
Vacancy Rate5.5%

How does Des Moines compare to nearby cities?

Des Moines vs Minneapolis: 0.5 percentage point difference in gross yield.

CityMedian PriceMedian RentGross YieldPop. Growth
Minneapolis, MN$320,000$1,6006%+0.2%
Chicago, IL$290,000$1,6006.6%-0.5%
Omaha, NE$240,000$1,3006.5%+0.6%
Kansas City, MO$220,000$1,2506.8%+0.5%
Milwaukee, WI$185,000$1,1007.1%-0.4%

Common questions about investing in Des Moines

Is rental investing profitable in Des Moines?▾
Yes, Des Moines offers a gross rental yield of 6.5%, which is above the national average of around 5–6%. With a median home price of $220,000 and median monthly rent of $1,200, the numbers support profitable rental investing — though your specific results depend on financing terms, expenses, and property management.
What is the average rental yield in Des Moines?▾
The average gross rental yield in Des Moines is approximately 6.5%, based on a median home price of $220,000 and median monthly rent of $1,200 (as of 2026-Q1). Net yield, which accounts for vacancy, expenses, and maintenance, is typically 2–3 percentage points lower.
How does Des Moines compare to Minneapolis for investors?▾
Des Moines has a gross yield of 6.5% compared to 6% in Minneapolis, a difference of 0.5 percentage points. Des Moines offers higher current income potential, making it more attractive for cash flow-focused investors.

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