Side-by-side comparison of Ames, IA and Iowa City, IA — cap rates, rent, prices, and investment metrics.
Cash flow: Iowa City has the edge with an estimated cap rate of 3.33% compared to Ames's 3.33%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $235,000 in Ames vs $245,000 in Iowa City, while rents come in at $1,150/mo and $1,200/mo respectively.
Growth & appreciation: Ames is growing faster at 0.8% annually vs Iowa City's 0.6%. Ames leads on home value appreciation at 2.5% per year.
Costs & risk: Property taxes are 1.5% in Ames vs 1.48% in Iowa City. Vacancy rates of 4.2% and 4.5% are both healthy, suggesting strong tenant demand in both markets.
Bottom line: Iowa City edges out Ames on most key metrics. While cap rates are moderate at 3.33%, Iowa City's overall profile is stronger. Use our free calculators to model specific deals in Ames or Iowa City.