Market Analysis
Des Moines Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$258,500
Average Monthly Rent
$1,065
Estimated Cap Rate
4.9%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 50314 | $189,900 | $895 | 0.47% |
| 50320 | $285,000 | $1,250 | 0.44% |
| 50309 | $310,000 | $1,265 | 0.41% |
| 50311 | $232,000 | $850 | 0.37% |
Context · FRED home price index
Market Trends
Des Moines metro area — % change since 2018
Home Prices
+58.1%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $910/mo |
| Condo | $1,031/mo |
| Multi-Family | $1,047/mo |
| Single Family | $1,559/mo |
| Townhouse | $1,598/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$258,500
Down Payment (20%)$51,700
Monthly P&I$1,348
Monthly Rent$1,065
Est. NOI$7,668/yr
Est. Cash Flow-$709/mo
Cash on Cash-15.0%
The Des Moines market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Des Moines
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $2,585/mo to pass
- 3Below-average rents keep entry costs low for new investors
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