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MarketsIowaDubuque

Cap Rate Analysis: Dubuque, IA

Investment metrics, interactive calculators, and data-driven analysis for Dubuque 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 $265,000 median price and $1,080/mo median rent
Est. Cap Rate
2.31%
1% Rule
0.41%
Fails
GRM
20.4x
Price / Income
5.3x

Market Data

Median Home Price$265,000
Median Monthly Rent$1,080
Property Tax Rate1.51%
Population50,000
Population Growth0.4% / yr
Median Household Income$49,771
Vacancy Rate5.6%
Annual Appreciation2.3%

Cap Rate Calculator — Dubuque

Pre-filled with Dubuque 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
1.83%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$4,854
net operating income
Gross Rent Multiplier
20.4x
High (>15)
1% Rule
0.41%
✗ Fails
Monthly Cash Flow
$405
before debt service
Annual Breakdown
Gross Rental Income$12,960
Less Vacancy−$726
Effective Income$12,234
Less Operating Expenses−$7,380
Net Operating Income$4,854
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Cash-on-Cash Return — Dubuque

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

$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.83%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-670
after all expenses
Annual Cash Flow
$-8,036
before taxes
Cash Flow Breakdown
Monthly Rent$1,080
Less Expenses−$454
Less Mortgage−$1,296
Monthly Cash Flow$-670

Is Dubuque a Good Place to Invest in Rental Property?

Dubuque, 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 $265,000 paired with median rents of $1,080/mo produces an estimated cap rate of 2.31%.

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 5.3x, homes cost about 5.3 times the local median income of $49,771. This moderate ratio indicates a balanced rent-vs-buy market. 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, Dubuque 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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