House Hacking Investing in Des Moines, IA

House Hack Score: 5.8/10Ranked #4 of 52 markets

Data-driven house hacking analysis for Des Moines, IA — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

House Hack Score:5.8
Affordable Entry Price(30%)
$200,0007.3
Rent-to-Price Ratio(25%)
0.63%3.6
Low Vacancy(20%)
5.9%7.6
Population Growth(15%)
+3.5%3.8
Livability (Income)(10%)
$81,6216.5

Key Metrics for House Hacking

Median Price

$200,000

FHA 3.5% down: $7,000

Median Rent

$1,250/mo

Per-unit rental income

Vacancy Rate

5.9%

Very tight

Pop. Growth

+3.5%

5-year trend

House Hacking Investment Thesis

Des Moines is a sleeper house hacking market. Low vacancy (5.8%), positive population growth, and affordable prices mean your units stay rented and your mortgage gets paid. The insurance/financial sector economy provides stable tenant employment.

How Des Moines Compares

RankCityHouse Hack ScoreCap RateMedian Price
#1Akron, OH6.38.6%$100,000
#2Huntsville, AL5.97.1%$260,000
#3Dayton, OH5.88.8%$95,000
#4Des Moines, IA5.86.6%$200,000
#5Cleveland, OH5.79.8%$105,000
#6Detroit, MI5.611.2%$85,000
#7Toledo, OH5.69.0%$88,000

Showing markets ranked near Des Moines for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,250/mo)$15,000
Less: Vacancy (5.9%)-$885
Less: Property Tax (1.57%)-$3,140
Less: Insurance (~0.5%)-$1,000
Less: Maintenance (~1.5%)-$3,000
Estimated NOI$6,975
Implied Cap Rate3.5%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the house hack score for Des Moines, IA?

Des Moines, IA scores 5.8 out of 10 on our house hack score, ranking #4 out of 52 markets we track. Weighted composite: affordable entry price (30%), rent-to-price ratio (25%), low vacancy (20%), population growth (15%), livability/income (10%). Scale 0–10.

Is Des Moines a good city for house hacking investing?

Yes — Des Moines, IA ranks in the top 10 for house hacking investing with a score of 5.8/10. Key factors include a median home price of $200,000, cap rate of 6.6%, and positive population growth of +3.5%.

What is the average cap rate in Des Moines?

The average cap rate in Des Moines, IA is 6.6%. The median home price is $200,000 with a median monthly rent of $1,250, resulting in a rent-to-price ratio of 0.63%.

What are the property taxes in Des Moines?

The effective property tax rate in Des Moines, IA is 1.57%. On a $200,000 property, that translates to approximately $3,140 per year in property taxes.

How does Des Moines compare to other house hacking markets?

Among our 52 tracked markets, Des Moines, IA ranks #4 for house hacking investing. It is one of the top-performing markets for this strategy.

Can I FHA-finance a house hack in Des Moines?

With a median home price of $200,000, most 2-4 unit properties in Des Moines, IA should fall within FHA loan limits. An FHA loan with 3.5% down would require approximately $7,000 as a down payment. Rental income from additional units (median $1,250/month each) can significantly offset your mortgage payment.

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