Updated 2026 · Based on median market data for Des Moines, IA
Home values in Des Moines, IA have appreciated at 2.7% per year. Appreciation is modest, meaning total returns will be driven primarily by cash flow rather than equity gains. This is actually preferred by many investors who want predictable, income-based returns.
If Des Moines continues appreciating at 2.7% annually, the current median of $215,000 would reach approximately $245,635 in 5 years — an equity gain of $30,635 on a property purchased at the median. With a 20% down payment of $43,000, that represents a 71% return on invested equity from appreciation alone. Combined with 5 years of NOI totaling approximately $41,754, the projected total return is $72,389 — a 168% cumulative return on the initial investment.
Des Moines's population growth of 0.7% is moderate and positive, supporting steady but not explosive demand for housing. Markets with this growth profile tend to appreciate consistently without the boom-bust cycles of hyper-growth metros.
Smart investors evaluate both cash flow AND appreciation. In Des Moines, the 3.88% cap rate provides moderate ongoing cash flow, while 2.7% annual appreciation adds an equity component. Conservative underwriting is essential. Focus on deals where the cash flow stands on its own, and treat any appreciation as a bonus.