Rent vs buy in Des Moines, IA
In Des Moines, Iowa, the typical home value is $208,053, and the typical rent is $1,129 /mo.
Renting comes out ahead by $29k over 7 years
Today's mortgage rate and 20% down, with the typical rent and home value for Des Moines's market. No break-even point within 30 years.
Clearly labeled opinion with the math shown. Estimates, not quotes. If you change a number, the stamp changes with it.
- Renting leads by
- $29k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- What owning really costs
- $2,009 a month year 1, against $1,129 rent
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Is it cheaper to rent or buy in Des Moines?
Over 7 years, renting costs $29,293 less after counting the money returned when you sell. Every year shown, renting's net cost is lower than owning's, and owning never catches up within 30 years.
Rent. Buy. Net cost by year so far.
Average rent compared with the mortgage payment in Des Moines
Rent and the mortgage don't tell the whole story. Here are all monthly costs in year 1, using Des Moines's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,129 | All of it, every month |
| Mortgage payment | $1,134 | $1,000 of it is interest in year 1 |
| Property tax | $312 | 1.8% of the value a year |
| Insurance | $99 | Census median for the city |
| Upkeep | $173 | 1% of the value a year |
| Owning, cash out | $1,719 | $135 of it builds equity |
| Lost return on the down payment | $338 | Cash earnings at 8.3% a year |
| Buying costs, spread out | $87 | 3.5% of the price over 7 years |
| True cost of owning | $2,009 | Cash out, minus the equity part, plus the two items listed above |
The numbers that drive the Des Moines verdict
- Typical home value (Zillow ZHVI, September 2026)
- $208,053
- Typical rentZillow data: ZORI, September 2026
- $1,129 /mo
- Down payment: 20% keeps private mortgage insurance out, and the engine does not model it.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index, Iowa, 1995 to 2025
- An annual rate of 3.7%
- Rent growthYearly growth in CPI rent of primary residence, 2006 to 2026
- 3.5% each year
- Return on savingsYearly rebalanced portfolio: 60% S&P 500 including dividends, plus 40% 10-year Treasuries, 1928 to 2025
- Each year, 8.3%
- Property tax: Census ACS 2020-2024, Des Moines
- 1.8% of the value
- Home insurance: Census ACS 2020-2024, Des Moines
- $99 each month
- Maintenance: Fannie Mae, low end of 1% to 4%
- Each year, 1% of the value
- Buying costsFreddie Mac, midpoint of 2% to 5%
- Applied to the price, 3.5%
- Selling costs: Agent commission plus closing costs
- 6% of the price
What would flip the result in Des Moines?
Each line marks the point that changes the 7-year verdict in Des Moines, while everything else remains as it is.
When renting comes out ahead
- Home prices grow by less than 5.5% a year (the rate we use is 3.7%, Iowa's long-run rate).
- Interest rates on the mortgage stay above 4.72%.
- A similar home rents for under $1,440 a month (the typical rate here is $1,129).
- Owning never catches up at these numbers, no matter when you move in the next 30 years.
When buying comes out ahead
- Home prices grow by more than 5.5% a year.
- You secure a mortgage rate under 4.72%; today's rate is 7.24%.
- The same home would cost over $1,440 a month to rent.
How Des Moines compares with the other 812 cities
| Measure | Des Moines | Median city |
|---|---|---|
| Typical home value | $208,053 | $422,451 |
| Typical rent | $1,129 /mo | $1,837 /mo |
| Price-to-rent ratio | 15.4 (#604 of 813) | 18.5 |
| Home prices, last 10 years | 5.5% a year | 6.2% a year |
| Rents, last 5 years | 2.8% a year | 4% a year |
| Property tax | 1.80% | 0.87% |
| Households that rent | 40% | 42% |
Source list: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities in Iowa besides Des Moines
- Rent. Sioux City, IA. Renting comes out ahead by $8k.
- Rent. Ankeny, IA. Renting comes out ahead by $74k.
- For West Des Moines, IA, renting comes out ahead by $71k.
- Rent. Council Bluffs, IA. Renting comes out ahead by $23k.