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MarketsIowaBurlington

Cap Rate Analysis: Burlington, IA

Investment metrics, interactive calculators, and data-driven analysis for Burlington rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $140,000 median price and $870/mo median rent
Est. Cap Rate
4.73%
1% Rule
0.62%
Fails
GRM
13.4x
Price / Income
2.8x

Market Data

Median Home Price$140,000
Median Monthly Rent$870
Property Tax Rate1.51%
Population50,000
Population Growth0.4% / yr
Median Household Income$49,771
Vacancy Rate5.6%
Annual Appreciation2.3%

Cap Rate Calculator — Burlington

Pre-filled with Burlington medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.51% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.78%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$5,295
net operating income
Gross Rent Multiplier
13.4x
Good (<15)
1% Rule
0.62%
✗ Fails
Monthly Cash Flow
$441
before debt service
Annual Breakdown
Gross Rental Income$10,440
Less Vacancy−$585
Effective Income$9,855
Less Operating Expenses−$4,560
Net Operating Income$5,295
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Cash-on-Cash Return — Burlington

Factor in financing to see your actual return on invested capital in Burlington.

$
$35,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.50%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$39,200
$35,000 down + $4,200 closing
Monthly Mortgage
$685
on $105K loan
Monthly Cash Flow
$-180
after all expenses
Annual Cash Flow
$-2,154
before taxes
Cash Flow Breakdown
Monthly Rent$870
Less Expenses−$365
Less Mortgage−$685
Monthly Cash Flow$-180

Is Burlington a Good Place to Invest in Rental Property?

Burlington, IA has a population of 50,000 and has been growing at 0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $140,000 paired with median rents of $870/mo produces an estimated cap rate of 4.73%.

Property taxes at 1.51% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.6% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 2.8x, homes cost about 2.8 times the local median income of $49,771. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Burlington presents moderate opportunities. Cap rates near 4.73% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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