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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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