Yes. The iPhone 5 has received iOS 10, so it can run all iOS 10 apps in their most recent versions. There are some (mostly hardware) features that iPhone 5 users don't have access to (e.g. 3D Touch) so they might not be able to use all power features, but that doesn't prevent you from using the complete fully updated app catalog.

As an iPhone 5S user, I don't feel like I'm disadvantaged at all from having a phone that is three generations behind.