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MarketsIowaClinton

Cap Rate Analysis: Clinton, IA

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

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

Challenging for pure cash flow
Based on $170,000 median price and $780/mo median rent
Est. Cap Rate
2.89%
1% Rule
0.46%
Fails
GRM
18.2x
Price / Income
3.4x

Market Data

Median Home Price$170,000
Median Monthly Rent$780
Property Tax Rate1.51%
Population50,000
Population Growth0.4% / yr
Median Household Income$49,771
Vacancy Rate5.6%
Annual Appreciation2.3%

Cap Rate Calculator — Clinton

Pre-filled with Clinton 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
2.30%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$3,904
net operating income
Gross Rent Multiplier
18.2x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$325
before debt service
Annual Breakdown
Gross Rental Income$9,360
Less Vacancy−$524
Effective Income$8,836
Less Operating Expenses−$4,932
Net Operating Income$3,904
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Cash-on-Cash Return — Clinton

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

$
$42,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.56%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$47,600
$42,500 down + $5,100 closing
Monthly Mortgage
$831
on $128K loan
Monthly Cash Flow
$-379
after all expenses
Annual Cash Flow
$-4,550
before taxes
Cash Flow Breakdown
Monthly Rent$780
Less Expenses−$328
Less Mortgage−$831
Monthly Cash Flow$-379

Is Clinton a Good Place to Invest in Rental Property?

Clinton, 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 $170,000 paired with median rents of $780/mo produces an estimated cap rate of 2.89%.

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 3.4x, homes cost about 3.4 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: At current median prices, Clinton is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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