# Des Moines, Iowa — Target Market

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**Status: On the watch list.** The most affordable market we track, with a supply pipeline thinning fast — a stable insurance-and-finance hub we’re watching closely.

## The numbers (data as of July 2026)

| Metric | Value | Source |
|---|---|---|
| Jobs y/y | +0.1% | BLS CES, May 2026 (prelim) |
| Population y/y | +1.03% | Census Vintage 2025 |
| Rent-to-income | 17.1% | Zillow NRAR — most affordable |
| Supply pipeline | Thinning | −33% vs. 10-year average |

## Why Des Moines

Des Moines is a financial-services capital — a national hub for insurance and asset management — with a diversified base that also includes agribusiness, logistics, and government.

It offers the best affordability in our set at 17.1% rent-to-income, meaning real room for rents to rise with incomes, and the construction pipeline is thinning fast (roughly a third below its 10-year average), which supports pricing power as demand steadily grows.

## What we’re watching

The one soft note is the pace of job growth.

- **Jobs.** Employment is essentially flat year-over-year (+0.1%), so the near-term thesis rests on affordability and thinning supply rather than a hiring boom.
- **Scale.** Like our other Midwest watch markets, deal flow in our unit band is steady but not deep.

## How this fits our box

20–50 units, B/C, 1985–2010 vintage, value-add, $2M–$8M — priced so a light reposition clears the gates: positive leverage from day one, ≥$100/unit/month in real cash flow, debt-service coverage we won’t stretch. Every sponsor calls their underwriting conservative; we’d rather [show you the gates](https://hermance.capital/learn/how-to-vet-a-sponsor) than claim the adjective.

*General market information, not investment advice or an offer of securities. Describes the metro, not any specific property. Refreshed quarterly.*