Quick answer
At current rates, renting wins over the full 30-year horizon in Des Moines. Monthly ownership cost $1,961 (vs $$1,350/mo rent) plus IA's 1.57% property tax make the math tough.
Rent vs Buy · IA
Rent vs Buy in Des Moines (2026)
Real math using IA's 1.57% property tax rate, $1,900/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In Des Moines at IA's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$1,961/mo
Mortgage P&I
$196,000 loan, 30yr @ 6.8%
$1,278
Property tax
1.57% of assessed (IA avg)
$321
Homeowners insurance
$1,900/yr IA avg
$158
Maintenance
1%/yr of home value
$204
Cash at close: ~$55,125 ($20% down + fees)
Renting
$1,350/mo
2BR rent (median)
Des Moines market rate
$1,350
Renters insurance
~$15/mo typical
$15
Down payment invested
$49,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $611 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $284,022 | $-86,648 | +$22,218 | $-108,866 |
| Year 10 | $329,260 | $-137,828 | $-2,174 | $-135,653 |
| Year 15 | $381,702 | $-176,785 | $-21,117 | $-155,667 |
| Year 30 | $594,679 | $-156,202 | +$28,972 | $-185,173 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Des Moines?
In Des Moines at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($1,961) well exceed median 2BR rent ($1,350), and IA's 1.57% property tax makes the math especially tough.
What's the monthly cost of owning a home in Des Moines?
On a median $245K home with 20% down at 6.8% fixed rate: mortgage P&I $1,278, property tax $321 (1.57% of assessed value), homeowners insurance $158 (IA average $1,900/year), and maintenance $204 (1% of home value/year). Total: $1,961/month.
How much down payment do I need to buy in Des Moines?
20% down on a median Des Moines home ($245K) is $49,000. Plus closing costs of roughly 2.5% ($6,125). Total cash-to-close: about $55,125. FHA loans allow 3.5% down ($8,575) but require mortgage insurance that adds ~$95/month.
What's the 10-year cost of renting vs buying in Des Moines?
Over 10 years in Des Moines: renters pay $185,715 in cumulative rent but have $183,540 invested (assuming 7% return on the $49,000 down payment + monthly savings). Buyers have paid $279,939 in total ownership costs and hold $161,867 in home equity. Net: renting is ahead by $135,653 at year 10.