Des Moines childcare real estate: values, cap rates & market data.
What childcare centers and daycare properties are worth in the Des Moines market — grounded in our own sold-comps database, our 2025 tuition survey, and U.S. Census data.
Des Moines, IA childcare market — key figures
The median childcare real estate cap rate in Iowa is 6.5%, based on 8 of 12 sold childcare transactions compiled by Little Scholars Real Estate, at a median sold price of $394 per square foot.
In the Des Moines, IA metro, 2 national-chain childcare centers surveyed in 2025 reported median monthly tuition of $1,700 for infants and $1,397 for preschool.
The Des Moines, IA metro has 46,622 children under age five and a median household income of $84,209; its population grew 13.6% and its under-five population grew 3.1% between 2018 and 2023.
Little Scholars Real Estate is a childcare-only business and real estate brokerage led by Alan Stahl, with 80 transactions closed across 18+ states.
Sources: Little Scholars Real Estate sold-comps database (592 childcare transactions across 41 states, updated June 2026); Little Scholars 2025 tuition survey, rates received directly from individual schools; U.S. Census Bureau, ACS 5-Year Estimates (2018 and 2023). Figures may be cited or republished with attribution to Little Scholars Real Estate (CC BY 4.0).
The Midwest's fastest-growing family market.
Des Moines grew 13.6% from 2018 to 2023 — and its under-5 count grew 3.1% with it, a combination almost no metro can match. Household income reached $84,209.
Our surveyed schools sit in the northern growth suburbs, Johnston and Ankeny. Iowa comps trade tight for the Midwest — a 6.5% median cap at $394 per square foot on 12 sales.
Real rates from Des Moines-market schools.
Actual monthly tuition rates our team received from national-chain schools in this market during our 2025 survey — not averages. Tuition drives revenue, and revenue drives value.
| Brand | Location | Infant / mo | Pre-K / mo | Licensed capacity |
|---|---|---|---|---|
| KinderCare | Johnston (Thomas Ave) | $1,580 | $1,277 | 205 |
| La Petite Academy | Ankeny (E 1st St) | $1,819 | $1,516 | 126 |
What childcare properties trade at in Iowa.
Across our sold-comps database, Iowa childcare properties have typically traded at 5.5–7.2% cap rates, at a median of $394 per square foot, across 12 sales. Where your property lands comes down to tenant credit, lease term, and the site itself.
| Brand (national) | Median sold cap | Median $/SF |
|---|---|---|
| KinderCare | 6.67% | $381 |
| La Petite Academy | 6.89% | $207 |
| Kiddie Academy | 6.46% | $378 |
| Tutor Time | 8.47% | $372 |
| Childtime | 6.20% | $262 |
6 childcare properties currently listed for sale in Iowa.
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