Invest In Apartment Buildings In Des Moines, WA

Where Des Moines's Apartment Demand Comes From

Des Moines's apartment demand starts with its 4,693 renter households, 39.4% of all occupied homes in the city (U.S. Census ACS 2020–2024). The renter count fell 0.6% from the 2015–2019 survey, roughly in step with population (up 3.4%).

The typical Des Moines household earns $92,483 a year, 31.7% more than in the 2015–2019 survey. The number of employed residents fell 3.5% over the same period, and unemployment stood at 7.5%. Rent and income have moved at a similar pace (34.6% and 31.7%), so affordability hasn't shifted much.

Des Moines has a sizable renter base without being a renter-majority market. Location inside the city matters a lot, since demand tends to cluster near jobs, transit and schools.

Rents, Vacancy And Supply In Des Moines

Median gross rent in Des Moines, WA is $1,799 a month, up 34.6% from $1,337 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

The rental vacancy rate is just 1.5%, a tight market by most standards. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 69.4% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 31.6% of homes in Des Moines are in buildings with 5 or more units, roughly 3,953 homes. That count was down 5.9% over five years, so new apartment supply has been limited. The median home was built in 1974, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation. For comparison, HUD's fiscal year 2027 Fair Market Rent for a two-bedroom unit in the Seattle-Bellevue, WA HUD Metro FMR Area is $2,549 a month.

Where Des Moines Stands Among Its Peers

We track 44 Washington cities. Des Moines places 20th for median gross rent, 30th for renter share and 25th for five-year rent growth. Its rents fall in the middle of the pack. Compared with the 2015–2019 survey, Des Moines now has about 1,089 more residents, 28 fewer renter households and 248 fewer homes in buildings with 5 or more units. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

Des Moines And Nearby Markets Side By Side

Des Moines's median gross rent of $1,799 is above the Washington median of $1,760, and its renter share is 39.4% compared with 36.2% statewide.

Rent Versus Income In Des Moines

At $1,799 a month, the median Des Moines rent adds up to $21,588 a year, or roughly 23.3% of what the median household earns. Under the common 30% guideline, a household needs about $72,000 a year to cover that rent comfortably. That's a heavier load than the Washington average of 21.5%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Des Moines rent climbed $462 a month over five years and household income climbed $22,261 a year. The two have moved together, so affordability today looks much like it did five years ago. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $2,549, is 41.7% above the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Des Moines Apartment Market Key Facts

These are the core numbers for Des Moines, WA, each from the Census Bureau's American Community Survey.

• Des Moines, WA has 32,823 residents, up 3.4% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Des Moines, WA is $92,483, up 31.7% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Des Moines, WA is $1,799 a month, up 34.6% over five years (U.S. Census ACS 2020–2024).
• 39.4% of households in Des Moines, WA rent, about 4,693 renter households (U.S. Census ACS 2020–2024).
• 31.6% of homes in Des Moines, WA are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Des Moines, WA is 1.5%, and 69.4% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Des Moines, WA was built in 1974 (U.S. Census ACS 2020–2024).

What We Look For In A Des Moines Apartment Building

Skyline buys 5+ unit apartment buildings in Des Moines that either run well today or can run better with new management or renovation. We start with rents, occupancy and the condition of the building, and we price on what the property earns now.

Washington has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Washington adopted a statewide cap on annual rent increases in 2025 for most rental housing older than 12 years. Our rent-control guides explain how these rules work. Insurance quotes in Washington reflect wildfire risk, so we get a quote before we make an offer.

After a stretch of fast rent growth, we keep rent assumptions modest and leave room for concessions if new supply opens nearby.

Questions To Ask About An Apartment Syndication In Des Moines

Before you invest in an apartment syndication in Des Moines, with us or anyone else, the local data points to a few questions worth asking.

• What vacancy does the plan assume? Rental vacancy in Des Moines is 1.5%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 34.6% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Des Moines was built in 1974, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building hold occupancy? Renter households in Des Moines fell 0.6%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Des Moines Apartment Syndication Works

In an apartment syndication, Skyline acts as the general partner. We find the Des Moines property, negotiate the purchase, arrange the loan and oversee management and any renovation. Limited partners put in capital and own a share of the entity that owns the building. They don't sign on the loan or deal with tenants and repairs.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

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