Cap Rate in Des Moines, IA

2026 Market Overview for Real Estate Investors

Avg Cap Rate

6.6%

#20 of 50 markets

Median Home Price

$200,000

Purchase price

Median Monthly Rent

$1,250

$15,000/yr gross

Rent-to-Price Ratio

0.63%

Moderate

Cap Rate Rating

Good

Strong return relative to market norms. Common in cash-flow-focused markets in the Midwest and South.

Market Snapshot

Population	214,133
5-Year Population Growth	+3.5%
Median Household Income	$55,000
Vacancy Rate	5.8%
Property Tax Rate	1.57%($3,140/yr)

Investor Takeaway

Des Moines is an insurance and financial services hub with low unemployment and steady population growth. Under-the-radar market with reliable cash flow and lower competition from institutional buyers.

Quick Math

Estimated annual numbers for a median-priced property in Des Moines, IA before financing:

Annual Gross Rent$15,000

Less Vacancy (5.8%)($870)

Less Property Tax (1.57%)($3,140)

Less Est. Insurance + Maintenance($4,000)

Estimated NOI$6,990

Implied Cap Rate3.5%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.