How Much Do You Need to Earn to Live in Des Moines, IA?
To afford the average apartment in Des Moines, you need to earn $50,400/year for a 2-bedroom or $42,000/year for a 1-bedroom under the 30% rule. This comprehensive guide breaks down exactly what it costs to live here, who can afford it, and how to stretch your budget further.
Real Estate Economics Analyst
MBA, Real Estate Finance
Published: March 2026
Learn more about AmandaAffordability Overview: Des Moines
Des Moines is a hidden gem of American affordability and livability. The city hosts multiple insurance and financial services headquarters—Principal Financial, EMC Insurance, Nationwide—creating a white-collar job market that pays significantly more than local costs demand. The result: Des Moines residents enjoy some of the highest discretionary income levels in the country. The city has invested in downtown revitalization, sculpture gardens, and the Des Moines River trail, creating genuine urban amenities at Midwest prices.
The median household in Des Moines earns $66,827 per year, or roughly $5,569/month before taxes. Under the 30% rule, that income supports a maximum rent of $1,671/month. This is enough to cover the average 2-bedroom apartment at $1,260/month, making Des Moines relatively manageable for typical households.
Income Required by Apartment Size
Based on the 30% rule: spend no more than 30% of gross income on rent. Green indicates the median household income ($66,827/yr) can cover it.
| Type | Monthly Rent | Monthly Income Needed | Annual Salary Needed | Median Can Afford? |
|---|---|---|---|---|
| Studio | $893/mo | $2,977/mo | $35,720/yr | Yes |
| 1-Bedroom | $1,050/mo | $3,500/mo | $42,000/yr | Yes |
| 2-Bedroom | $1,260/mo | $4,200/mo | $50,400/yr | Yes |
| 3-Bedroom | $1,628/mo | $5,427/mo | $65,120/yr | Yes |
| 4-Bedroom+ | $1,995/mo | $6,650/mo | $79,800/yr | No |
Income requirements calculated as: (monthly rent / 0.30) x 12. “Median Can Afford” is based on the local median household income of $66,827/year.
Monthly Budget Breakdown: Living in Des Moines
What a typical month costs for a 2-bedroom renter, compared to the national average. Costs adjusted using city-specific multipliers from BLS data.
| Expense | Des Moines | National Avg | Difference |
|---|---|---|---|
| Rent (2BR) | $1,260 | $1,375 | $-115 (-8%) |
| Utilities | $190 | $200 | $-10 (-5%) |
| Groceries | $405 | $450 | $-45 (-10%) |
| Transportation | $308 | $350 | $-42 (-12%) |
| Healthcare | $270 | $300 | $-30 (-10%) |
| Savings (10%) | $557 | $625 | $-68 (-11%) |
| Total Monthly | $2,990 | $3,300 | $-310 |
Des Moines consistently ranks among the most livable and affordable state capitals in America. The insurance and financial services cluster provides salaries that dramatically outpace local costs. Iowa's declining income tax rates are a growing advantage. Heating costs are the major variable ($150-250/month in winter). Groceries and healthcare run well below national averages. The Farmers Market and growing food scene in the East Village provide affordable dining and entertainment.
Rent Burden Analysis
In Des Moines, the median household spends approximately 18.9% of gross income on rent for a 1-bedroom apartment. This is 12.6 percentage points below the national average of 31.5%.
Des Moines households are in a relatively comfortable position regarding housing costs. The typical renter has enough income left after rent for savings, healthcare, and other essentials without significant strain.
For a 2-bedroom apartment at $1,260/month, a household would need to earn at least $50,400/year to stay at or below the 30% threshold. The local median income of $66,827 exceeds this requirement.
Who Can Afford to Live in Des Moines?
A profession-by-profession breakdown based on local salary data and current rent prices.
Software Engineer
Insurance Professional
Teacher
Retail Worker
Most Affordable Neighborhoods in Des Moines
These neighborhoods offer rents significantly below the Des Moines average while maintaining access to jobs and amenities. Rents here are typically 20-40% below the metro average.
Money-Saving Tips for Des Moines Renters
Practical strategies specific to the Des Moines rental market, not generic advice.
South Des Moines and East Side neighborhoods offer rents 20-35% below the Western Suburbs or Downtown.
Iowa income tax has been reduced and continues to trend downward (flat 3.8% as of 2026).
The insurance industry cluster provides stable, well-paying white-collar jobs.
Many apartments in the East Village and downtown include amenities that offset higher base rents.
Ankeny, Altoona, and Pleasant Hill offer family-friendly suburbs at moderate premiums.
Economic Context: Des Moines Job Market
Major Employers
Average Salaries by Profession
| Profession | Avg Salary | Max Rent (30%) | Afford 2BR? |
|---|---|---|---|
| Insurance Professional | $72,000 | $1,800/mo | Yes |
| Software Engineer | $90,000 | $2,250/mo | Yes |
| Registered Nurse | $60,000 | $1,500/mo | Yes |
| Teacher | $50,000 | $1,250/mo | No |
| Retail Worker | $32,000 | $800/mo | No |
Salaries based on local market data. “Max Rent” = salary / 12 x 0.30. “Afford 2BR?” compares max rent to the Des Moines average 2BR of $1,260/mo.
Nearby More Affordable Alternatives
If Des Moines stretches your budget, these nearby metros offer lower rents while keeping you in the same region.
Frequently Asked Questions: Des Moines Affordability
What salary do I need to afford a 1-bedroom apartment in Des Moines?
To afford the average 1-bedroom apartment in Des Moines, IA at $1,050/month, you need an annual income of approximately $42,000 based on the 30% rule (spending no more than 30% of gross income on rent). The median household income in Des Moines is $66,827, which is sufficient to afford a 1-bedroom at market rates.
What percentage of income do renters spend on housing in Des Moines?
The average renter in Des Moines, IA spends approximately 18.9% of household income on rent, below the national average of 31.5%. This places Des Moines in a relatively favorable position for renters compared to many US metros.
What is the most affordable bedroom type in Des Moines?
Studios are the most affordable option in Des Moines, IA, requiring an annual income of approximately $35,720 to afford comfortably. The median household income of $66,827 can cover a studio within the 30% guideline.
What does a monthly budget look like in Des Moines?
A typical monthly budget for a 1-bedroom renter in Des Moines, IA includes: rent ($1,050), utilities ($190), groceries ($405), transportation ($308), healthcare ($270), and savings ($557), totaling approximately $2,780/month.
Is Des Moines affordable compared to the national average?
Des Moines is rated "very affordable" with an affordability score of 69/100. The city offers better-than-average affordability, with rents that are manageable for most working households.
What are the most affordable neighborhoods in Des Moines?
The most affordable neighborhoods in the Des Moines, IA metro include South Des Moines, East Side, Urbandale, Clive, Johnston. These areas typically offer rents 20-40% below the city average while still providing access to employment centers and amenities.
Can a software engineer afford to live in Des Moines?
A software engineer earning approximately $90,000/year in Des Moines can typically afford: A house rental or premium apartment anywhere in the Des Moines metro. The main challenge would be: Nothing is unaffordable in Des Moines at this salary.
Related Des Moines Resources
Data sources: HUD Fair Market Rents (2026), U.S. Census Bureau American Community Survey (median household income: $66,827 for Des Moines, IA), BLS Consumer Expenditure Survey (cost-of-living adjustments). Fair Market Rent represents the 40th percentile of gross rents for typical, non-luxury apartments. Actual rents vary by neighborhood, amenities, and market conditions. Last updated: March 2026.
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