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Cap Rate Analysis: Cedar Rapids, IA

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

Moderate — source deals carefully
Based on $185,000 median price and $1,050/mo median rent
Est. Cap Rate
4.16%
1% Rule
0.57%
Fails
GRM
14.7x
Price / Income
3.3x

Market Data

Median Home Price$185,000
Median Monthly Rent$1,050
Property Tax Rate1.48%
Population137,710
Population Growth0.4% / yr
Median Household Income$56,800
Vacancy Rate5.5%
Annual Appreciation2.3%

Cap Rate Calculator — Cedar Rapids

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.48% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.33%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,159
net operating income
Gross Rent Multiplier
14.7x
Good (<15)
1% Rule
0.57%
✗ Fails
Monthly Cash Flow
$513
before debt service
Annual Breakdown
Gross Rental Income$12,600
Less Vacancy−$693
Effective Income$11,907
Less Operating Expenses−$5,748
Net Operating Income$6,159

Cash-on-Cash Return — Cedar Rapids

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

$
$46,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.85%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$51,800
$46,250 down + $5,550 closing
Monthly Mortgage
$905
on $139K loan
Monthly Cash Flow
$-296
after all expenses
Annual Cash Flow
$-3,547
before taxes
Cash Flow Breakdown
Monthly Rent$1,050
Less Expenses−$441
Less Mortgage−$905
Monthly Cash Flow$-296

Is Cedar Rapids a Good Place to Invest in Rental Property?

Cedar Rapids, IA has a population of 137,710 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 $185,000 paired with median rents of $1,050/mo produces an estimated cap rate of 4.16%.

Property taxes at 1.48% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.3x, homes cost about 3.3 times the local median income of $56,800. 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: Cedar Rapids presents moderate opportunities. Cap rates near 4.16% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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