What is the rental yield in Downtown, Des Moines, Iowa?

The gross yield in Downtown, Des Moines, Iowa is 4.8%. That sits alongside prices that are 8% above the city median and 23% above the state median, with a price trend down 2.3% over the past year. The Red Flag score is 77.

How has Downtown, Des Moines, Iowa performed over the past year?

Prices in Downtown, Des Moines, Iowa are down 2.3% over the past year. The neighborhood still trades 8% above the city median and 23% above the state median, with a gross yield of 4.8%. Walkability is 84 and the Red Flag score is 77.

Neighborhood

Downtown

Des Moines, Iowa US

Downtown, Des Moines, Iowa has an investment profile defined by an 8% premium to the city median, 23% above the state median, a gross yield of 4.8%, and a price trend down 2.3% over the past year. Walkability of 84 is a clear strength, while a Red Flag score of 77 indicates elevated overall risk. Education is in the 13th percentile, which is a low objective school-district test-score percentile.

AI Summary•Updated June 2026

Area

1.81 mi²

ZIP Code

50309

County

Polk County

State

Iowa

Redfin — median sale & volumeZillow ZORI — asking rentFEMA National Risk Index v1.20OpenStreetMap — POIFBI UCR — state crimeEPA — radon zonesWashU ACAG — satellite PM2.5EPA FRS / BTS — hazard screeningUS Census ACS / TIGER 2024

Verified Price · Median Sale

$312,107

YoY-2.3%

Gross Rental Yield

4.8%

Listed rent · ZORI annualized

Red Flag Index

High

77 / 100

Walkability Score

Very Walkable

OpenStreetMap POI density · national percentile

Education Score

13 / 100

Limited · better than 13% of U.S. districts

Pre-pandemic SEDA (2018/19) · district proxy

AI Score

Limited

DistrictScore attractiveness · national model

Downtown Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for Downtown, Des Moines.

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Market Economics Snapshot

Jun 2026

Metric	Value	YoY
Median Sale Price	$312,107	-2.3%
Price / Sq Ft (Verified)	$214/sqft	-5.7%
Asking Rent (Median)	$1,242/mo	-2.5%
Gross Rental Yield	4.8%	—
Liquidity Score	13 / 100	Low
Homes Sold (Period)	15	-40.0%

Is Downtown Safe? Natural-Hazard Risk

FEMA National Risk Index composite across eight hazards, plus inherited Iowa crime context.

Red Flag Breakdown

77 / 100

High Risk

Composite is weighted by expected impact — frequent low-damage hazards (hail, wind) weigh less than flood or wildfire.

Flood100Very High

Tornado100Very High

Heat100Very High

Strong Wind100Very High

Hail100Very High

Earthquake80Very High

Wildfire40Moderate

Hurricane40Moderate

8/8 hazards scored · FEMA NRI v1.20

Crime (state-level): Iowa averaged 15.4 crimes and 2.4 violent per 1,000 residents (-9.2% YoY) in 2024(FBI UCR). Compare the state to the country, not states as a ranking — full Safety & Crime data lives on the state page.

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What Stands Out AI Insight

Highly walkable neighborhood — score 84/100

Dense amenities — 52 dining & 9 grocery options nearby

Flood risk is Very High (100/100)

Tornado risk is Very High (100/100)

Insights are generated from Downtown's live DistrictScore metrics.

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Downtown Environment & Safety

Satellite PM2.5 air-quality history, FBI UCR crime trend (Iowa-level, the finest official aggregation), EPA radon potential and point-source hazard screening.

Air Quality — PM2.5

2015–2024

6.3 µg/m³ Meets EPA, above WHO guideline-10.1% since 2015

EPA 9WHO 5

20152024

Annual mean fine-particle (PM2.5) concentration at the Downtown centroid, satellite-derived (ACAG). References: WHO guideline 5 µg/m³ · EPA annual standard 9 µg/m³. Latest year ranks worse than 61% of U.S. neighborhoods.

Iowa Crime Trend

FBI UCR

20132024

All crimes / 1k

Violent / 1k

Year	Crimes / 1k	Violent / 1k	YoY
2024	15.4	2.4	-9.2%
2023	17.1	2.7	+1.5%
2022	16.9	2.9	-6.1%
2021	18.0	3.0	-8.9%
2020	20.0	3.0	-6.2%
2019	21.4	2.9	—

Reported at the state level — the finest official US crime aggregation; Downtown inherits the Iowa figures.

Radon Potential

EPA

Zone 1

Zone 1 — Highest potential · Downtown

EPA radon zones estimate indoor radon potential county-wide (Zone 1 highest, Zone 3 lowest). Testing is recommended in all zones.

Environmental Hazards

EPA / BTS

Superfund (NPL)0.0 kmVery High

Industrial odor18 nearbyVery High

Point-source screening near Downtown: EPA Superfund National Priorities List & Facility Registry (2026), BTS aviation noise (2020, 24-hour average level). Superfund shows distance to the nearest listed site; odor shows detected sources within the screening radius. Only detected sources are listed; the bar shows severity vs. all U.S. neighborhoods.

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Walkability & Amenities in Downtown

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

84

Very Walkable

Walkability Score

9

Grocery

52

Dining

3

Schools

2

Universities

7

Hospitals

2

Pharmacies

33

Parks

2

Rail Transit

1

Coworking

POI counts are amenities within Downtown's boundary plus a 400 m walk buffer. Rail transit excludes bus stops.

Downtown vs Des Moines vs Iowa

How Downtown benchmarks against its city and state medians.

Benchmark vs City & State

In Downtown, the median sale price sits about 8% above the median for Des Moines neighborhoods and about 23% above the statewide median. Gross rental yield is 4.8%, against 5.6% for Des Moines neighborhoods and 4.8% statewide. Over the past 12 months, prices fell 2.3%. Transaction liquidity sits below the median for Des Moines neighborhoods and below the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
Downtown	$214/sqft	4.8%	13
Des Moines	$199/sqft	5.6%	25
Iowa	$174/sqft	4.8%	32

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Buying Property in the US as a Foreigner

Federal & Iowa tax facts for non-resident buyers, plus the latest local market news.

Buying as a Foreigner

US Tax & Ownership

Applies to everyone7

Capital Gains (Federal)

Long-term capital gains taxed federally at 0/15/20%, plus a 3.8% Net Investment Income Tax on higher incomes (2026).

Property Tax

Property tax: ~1.25% average effective rate (statewide average; set and collected locally).

State Income Tax

State income tax up to 3.8%; rental income is taxed at these rates.

State Capital Gains

Capital gains are taxed as ordinary income at state rates.

Transfer Tax

Real estate transfer tax: real estate transfer tax.

Assessment Cap

No Proposition 13-style assessment cap; property is reassessed at market value.

Mansion Tax / Rent Control

No statewide mansion tax or statewide rent control.

US citizens & tax residents8

Primary-Home Exclusion

Selling your main home: exclude up to $250k of gain (single) / $500k (married) if you owned and lived there 2 of the last 5 years.

1031 Like-Kind Exchange

A 1031 like-kind exchange defers capital gains tax on investment property; 45 days to identify, 180 to close. Real estate only.

Depreciation Recapture

Residential rentals depreciate over 27.5 years; on sale, recaptured depreciation is taxed up to 25% (Section 1250).

Mortgage Interest Deduction

Mortgage interest is deductible on up to $750k of home debt. The SALT cap rose to $40,000 for 2025-2029 (reverts to $10k in 2030).

Opportunity Zones

Opportunity Zones are now permanent (2025): reinvested capital gains get deferral plus a basis step-up, and are tax-free after 10 years.

Rental Income (Resident)

Rental income is reported on Schedule E; passive-loss rules (Section 469) limit deducting rental losses against other income.

Homestead Exemption

Homestead exemption with unlimited protection from most creditors (subject to limits).

1031 State Conformity

The state conforms to the federal 1031 like-kind exchange rules.

Foreign buyers (non-residents)5

FIRPTA (Foreign Sellers)

FIRPTA: the buyer withholds 15% of the gross sale price when a nonresident sells US property. It is an advance deposit, not the final tax.

Non-Resident Capital Gains

Nonresident sellers pay US capital gains tax (generally 15-20%) on the net gain via Form 1040-NR; FIRPTA withholding is credited.

Non-Resident Rental Tax

Nonresident rental income is taxed at 30% of gross by default, or on net income at graduated rates via a Section 871(d) election (W-8ECI).

Estate Tax (Non-Resident)

Nonresidents get only a $60,000 US estate-tax exemption (vs $13.99M for residents); US property above it is taxed up to 40%. Treaties may help.

ITIN Requirement

Nonresidents without an SSN need an ITIN (Form W-7) to file US tax returns, claim FIRPTA refunds, and report rental income.

Talk to a US real-estate tax advisor

FIRPTA, ITIN & Iowa property-tax guidance for foreign buyers

Latest Des Moines Real-Estate News

New Fed chairman may leave mortgage rates mostly unchanged

Guaranteed Rate • Jun 18, 2026

Household real estate wealth hits record $48.7 trillion

Eye On Housing • Jun 18, 2026

U.S. commercial property prices hit record as deal patterns shift

Altus Group • Jun 18, 2026

Downtown Real Estate FAQ

Downtown, Des Moines, Iowa shows a mixed investment profile. Prices are 8% above the city median and 23% above the state median, gross yield is 4.8%, and prices are down 2.3% over the past year. Walkability is 84, while the Red Flag score is 77.

Neighborhoods near Downtown

Compare Downtown with nearby neighborhoods in Des Moines.

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