Des Moines, IA: Rental Property Market Guide

Updated March 2026 · Pop. 212,031

Des Moines is the insurance capital of America. Principal Financial, Wellmark Blue Cross Blue Shield, EMC Insurance, FBL Financial, Athene USA, and a dozen other insurers are headquartered here, creating the highest concentration of insurance industry jobs in the country. Insurance workers are, by nature, risk-averse — which translates to a tenant base that pays rent on time, doesn't damage properties, and stays for years because the local job market rewards tenure. Des Moines also has one of the lowest unemployment rates among mid-size metros (consistently under 3%), which means virtually everyone who wants to work in Des Moines can find a job.

The Insurance District Tenant Pool

Downtown Des Moines and the surrounding neighborhoods — Sherman Hill (50309), Drake (50311), Beaverdale (50310), and Ingersoll (50312) — draw from the insurance industry's young professional pipeline. Entry-level actuaries, claims adjusters, and underwriters earning $50-70K are the core tenant demographic. They rent 2-3 bedroom homes and apartments for $1,000-1,400/month while they save for home purchases (which in Des Moines usually takes 3-5 years of renting). Properties in these neighborhoods run $180-260K. The Drake University area (50311) adds 3,000+ students to the rental demand pool. The combination of insurance professionals and university students creates dual-demand that keeps vacancy below 5% in the urban core.

Polk County Property Taxes

Polk County's effective property tax rate is approximately 1.5% — moderate. A $200K property costs roughly $3,000/year in taxes. Iowa's property tax system is complex: the state sets a "rollback" percentage that adjusts residential assessed values, and local government levies determine the mill rate. The Polk County Assessor's website (assess.co.polk.ia.us) has parcel data. Iowa also has a Homestead Credit for owner-occupants (not available to investors), which means the property's tax bill may increase when it converts from owner-occupied to rental. Budget based on the non-homestead tax amount, not the amount the previous owner was paying.

Jordan Creek and West Des Moines

West Des Moines (50266, 50265) is the suburb where Des Moines's money lives — the Jordan Creek area has some of the highest household incomes in Iowa. Properties here run $280-380K with rents of $1,500-1,900, attracting dual-income professional families with kids in the West Des Moines School District (one of Iowa's best). Cap rates are lower (5-5.5%) but tenant quality is outstanding and turnover is rare. If your strategy is hands-off, premium-tenant investing, West Des Moines is the Des Moines metro equivalent of what Edmond is to Oklahoma City or Vestavia Hills is to Birmingham — the safe, low-drama suburban play.

The Data Center Boom

Microsoft, Facebook (Meta), and Apple have all built or announced data centers in the Des Moines metro. These facilities don't create massive direct employment (data centers are capital-intensive, not labor-intensive), but the construction phase brings hundreds of workers, and the operational phase brings high-skilled technicians earning $70-100K. The Altoona area (50009) east of Des Moines has been the primary beneficiary, with property values climbing as data center tax revenue funds infrastructure improvements. For investors, the data center corridor is a small but meaningful demand signal for quality rental housing in the eastern suburbs.