Last updated: May 2026 | Sources: RentCafe, Zumper, Zillow Rental Manager, Rentometer, MMG Real Estate Advisors, SmartMove DSM
The Des Moines rental market in 2026 is best described as a market in transition — moving from the supply-constrained, landlord-favorable conditions of 2021–2023 toward a more balanced environment where pricing discipline and professional management matter more than they did when demand absorbed everything.
That's not a warning. It's a description of a healthy, stabilizing market with strong long-term fundamentals. Des Moines continues to add population, jobs, and household formation. Rents remain among the most affordable in the Midwest relative to income. And single-family rental demand — driven by families who can't or won't buy in the current rate environment — remains structurally strong.
Here's what the data shows as of mid-2026.
Current Average Rents by Property Type
Single-family homes (3-bedroom):
| Submarket | Avg. Monthly Rent |
|---|---|
| Waukee | $1,750–$2,295 |
| Ankeny (northeast) | $1,500–$1,700 |
| Johnston | $1,600–$2,000 |
| Urbandale | $1,287–$1,425 |
| Des Moines (city) | $1,100–$1,445 |
| East Des Moines / Invest DSM zones | $900–$1,300 |
Sources: Rentometer Q1 2025, Zumper March 2026, RentCafe March 2026
By bedroom count, Des Moines metro (all property types):
- Studio: $850–$995/month
- 1-bedroom: $945–$1,305/month
- 2-bedroom: $1,094–$1,488/month
- 3-bedroom: $1,287–$1,630/month
Key context: Rent data for Des Moines varies by source because different platforms measure different segments. RentCafe and Zumper primarily track larger apartment buildings. Rentometer and Zillow capture single-family homes more completely. For single-family rental investors, Rentometer's per-neighborhood data is the most reliable comparables source.
Vacancy and Supply Conditions
Overall metro vacancy: Approximately 6.1%, up from the 4–5% range that characterized 2021–2022. This increase reflects a wave of new apartment construction that peaked in early 2023 (over 3,900 units under construction) and has since slowed dramatically — new construction starts fell approximately 66% through 2024–2025, and units under construction as of Q1 2025 stood at just 1,291, well below the historical average of roughly 2,675 per quarter.
What this means in practice: The vacancy increase is concentrated in the new luxury apartment segment, where move-in specials and concessions have become common in West Des Moines, Waukee, and Ankeny's newest developments. The workforce and naturally occurring affordable housing (NOAH) segment — which includes most single-family rentals in established neighborhoods — is experiencing tighter conditions. Well-maintained, reasonably priced single-family homes in desirable school districts continue to lease relatively quickly with minimal incentives required.
Days to lease: Metro-wide average is approximately 35 days, up from 30 days a year ago. Well-priced homes in Waukee and Ankeny average 18–21 days. Properties that are overpriced relative to local comps are sitting significantly longer. For a step-by-step guide on how to price your rental property in Des Moines, see our full pricing guide.
Supply trajectory: With new construction activity down sharply, the pipeline of additional rental supply is thinning. The Des Moines multifamily market is forecast to see demand outpace deliveries for the first time since 2021, which should gradually tighten vacancy through 2026 and into 2027 — a positive signal for landlords operating in the market today.
Rent Growth Trends
Rent growth in Des Moines has moderated from the elevated pace of 2021–2022 to a more sustainable rate:
- Overall metro (all property types): 0.82–1.4% year-over-year, depending on source and segment
- Single-family homes specifically: Outperforming apartments due to structural demand; Rentometer data shows 3-bedroom homes in Ankeny averaging $1,445/month — up meaningfully from pre-pandemic levels
- Projected 2025–2026 rent growth: 2.8% annually by end of 2026, per MMG Real Estate Advisors forecast, reflecting tightening supply conditions
By submarket: Rent growth is not uniform. Waukee and Ankeny continue to show the strongest single-family rent support, driven by population growth and school district demand. Inner Des Moines and the apartment-heavy corridors of West Des Moines are seeing softer conditions where concessions have appeared.
What's Driving Demand
Population growth: The Des Moines metro continues to add residents. Waukee alone has grown 62% since the 2020 Census and is on track toward 50,000 residents by 2040. Ankeny, at 70,000+ residents, remains one of Iowa's fastest-growing cities. This growth creates structural rental demand independent of economic cycles. For Waukee's full investor profile, see our guide to the best areas to buy rental property in Des Moines.
Homeownership barriers: With 30-year mortgage rates stabilized in the 6.5–7% range, a significant portion of households that would have purchased homes in a lower-rate environment are renting instead. This "accidental renter" population skews toward higher incomes and longer tenancy duration — an ideal tenant profile for single-family landlords.
Employment: Des Moines's employment base — anchored by Principal Financial, Nationwide, EMC Insurance, Wells Fargo, and a growing healthcare and technology sector — provides stable, recession-resistant rental demand. The metro's unemployment rate remains well below national averages.
Single-family rental preference: Nationally, 31% of all renters now live in single-family homes, up from prior decades. The preference for space, outdoor areas, and school district access is particularly strong among the family demographic that dominates Des Moines's suburban rental markets.
Submarket-by-Submarket Snapshot
Waukee The growth market. Population up 6.8% annually. Employment in the submarket grew 9.18% in one year. Home values near $490,000 median. Rents in the $1,750–$2,295 range for 3-bedrooms. Cash flow is thin but appreciation continues. Tenant profile: high-income families and remote workers. Vacancy: tight in single-family segment.
Ankeny The balanced market. Median home values around $357,500, up 7.8% year-over-year. 3-bedroom rents ranging $1,400–$1,700, with northeast Ankeny commanding a premium. School district (Niche grade A, 96.4% graduation rate) drives family tenant demand. Days on market: 22–33 for well-priced homes. Tenant profile: families, healthcare workers, professionals.
Johnston The professional market. Stable 3–5% annual appreciation. Corporate employer base (Principal, healthcare networks) drives professional tenant demand. 3-bedroom rents: $1,600–$2,000. Lower management intensity than other markets due to tenant profile. Best for investors who value stability over upside.
Urbandale The cash flow market. More affordable acquisition prices ($220,000–$310,000) relative to rent ($1,050–$1,287 for 3-bedrooms). Central location drives diverse, durable demand. Older housing stock requires more active capital planning. 2% rental price softness year-over-year in apartment segment; single-family holding better.
East Des Moines / Invest DSM zones The opportunity market. Lowest acquisition prices ($100,000–$200,000). Highest yields. City-backed investment incentives through the Invest DSM program (dollar-for-dollar matching grants for eligible exterior improvements). New Special Investment Districts added in 2025: Union Park, North of Grand, Woodland Heights. Management intensity is highest here; rewards investors who engage actively.
What This Means for Landlords
If you're currently holding a rental: The market supports modest rent increases (2–4%) at renewal if your tenant is in place and the property is well-maintained. Pushing aggressively beyond market risks triggering a vacancy in a market where re-leasing takes slightly longer than it did 18 months ago. Price renewal increases based on current comps for your specific submarket, not metro-wide averages.
If you're considering acquisition: The single-family rental segment remains fundamentally sound. The best opportunities right now are properties in established neighborhoods at reasonable prices with light renovation needs — value-add plays in Urbandale, established Ankeny, and Johnston where cap rates are more attractive than new construction. Waukee offers long-term appreciation with thin near-term cash flow.
If you're setting rent on a new vacancy: The market rewards accurate pricing. Properties priced within 3% of current comps lease 40% faster than those priced 10% above. In a market where days-to-lease has extended, pricing discipline is more important than it was two years ago when demand absorbed everything.
If you're evaluating the Invest DSM zones: The program's expansion in 2025 creates a genuine opportunity for investors willing to do the work. The combination of low acquisition prices, matching grants, and city-backed neighborhood investment creates favorable conditions for patient capital. Visit investdsm.org for current program details.
Looking Ahead: The Rest of 2026
The factors that support the Des Moines rental market are structural and durable:
- Population growth continues in all major suburbs
- New construction pipeline has thinned significantly
- Homeownership remains constrained by rates
- Employment base is diversified and stable
- Single-family rental preference is increasing nationally
The risks are equally clear: softness in the luxury apartment segment could eventually compress rents in adjacent markets; a significant rate drop would bring buyers back and reduce the accidental-renter pool; and any economic shock to the financial services sector — Des Moines's largest employment base — would have local impact.
On balance, 2026 is a year for execution, not speculation. The landlords and investors who will perform best are those with well-maintained properties, accurate pricing, strong tenant screening, and professional management systems — not those who acquired in the right zip code and expected the market to do the work.
This market update reflects data available as of May 2026. Rental markets change frequently. Always verify current conditions with local sources before making investment or pricing decisions. Caddie Property Management publishes updated market data for Des Moines landlords and investors. Contact us for a rental assessment on your specific property.
