What's a good cap rate in Des Moines?

In Des Moines, cap rates typically run around 8.0% (Iowa state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Des Moines deal lands versus this benchmark.

What's the average rent for a rental in Des Moines?

A typical rental in Des Moines runs about $1,318–$1,794/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Iowa?

Iowa's effective property tax rate is about 1.52% of value per year — the figure TrueCap applies by default for Des Moines deals. You can override it with the exact local rate.

Des Moines, IA

Des Moines rental property analysis

Des Moines is an underrated stability market — an insurance-and-finance hub with steady job growth, low unemployment, and affordable housing.

Des Moines market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

8.0%

Iowa state median

Typical rent

$1,318–$1,794/mo

HUD FMR · 2–3BR · 2026

Typical price

$190,000–$290,000

est., all-in

Property tax

1.52%

Iowa effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Des Moines a good place to buy rentals?

Low volatility, dependable tenants, and reasonable entry make for a clean buy-and-hold market. Cash flow is solid; appreciation is steady, not spectacular.

See the full Iowainvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Des Moines

Beaverdale

Desirable, stable, strong tenant demand.

East Des Moines

Affordable SFRs, good rent ratios.

West Des Moines

Suburb with newer stock, family renters, low vacancy.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Des Moines deal in 60 seconds

Paste a Des Moines address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Iowa tax and HUD rent so you start from the right assumptions.

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