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MarketsIowaDubuqueRental Property Investment Guide

Rental Property Investment Guide: Dubuque, IA

Updated 2026 · Based on median market data for Dubuque, IA

Cap Rate
2.31%
Median Price
$265K
Rent/Mo
$1,080
1% Rule
0.41%
Fails

Market Snapshot

Dubuque sits in the Midwest with a population of 50,000 growing at 0.4% annually. The median home costs $265,000 while rents average $1,080/mo, producing an estimated cap rate of 2.31%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

Dubuque works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 2.31% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Dubuque

Target properties priced 15-25% below the $265,000 median — around $212,000 or less. At this price point with $1,080/mo rents, your cap rate improves to roughly 3.5%. Factor in 1.51% property taxes ($4,002/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.6% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,843.

Risks and Considerations

Property taxes at 1.51% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Dubuque property using our cap rate calculator (pre-filled with Dubuque data). Compare Dubuque against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Dubuque Compares

Dubuque vs Iowa state average and national average across key investment metrics. Dubuque's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
Dubuque
Iowa Avg
National Avg
Cap Rate
2.31%
3.14%
3.81%
Median Price
$265K
$214K
$333K
Median Rent
$1,080
$1,010
$1,524
Property Tax
1.51%
1.51%
1.08%
Vacancy
5.6%
5.6%
5.6%
Pop. Growth
0.4%/yr
0.4%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
Dubuque, IA
2.3%
$265K
$1,080
1.51%
Springfield, MO
3.3%
$265K
$1,250
1.18%
St. Louis, MO
3.9%
$265K
$1,400
1.24%
Kalamazoo, MI
3.4%
$265K
$1,340
1.46%
Grand Forks, ND
3.2%
$265K
$1,170
1%

Frequently Asked Questions

Is Dubuque, IA a good place to invest in rental property?
Dubuque has an estimated cap rate of 2.31%, which is below the national average of 3.81%. With median home prices at $265K and rents of $1,080/mo, pure cash flow investing in Dubuque is challenging at median prices, but value-add strategies can work. Population growth of 0.4% and 5.6% vacancy rate indicate healthy tenant demand.
What is the average cap rate in Dubuque?
The estimated cap rate for Dubuque is 2.31%, based on median home prices of $265K, median rents of $1,080/mo, a 1.51% property tax rate, and 5.6% vacancy. This compares to a 3.14% average across Iowa and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Dubuque?
The median home price in Dubuque is $265,000, which is 21% below the national average of $333,419. A 20% down payment would be approximately $53,000. Investment properties in Dubuque range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Dubuque property taxes for investors?
Dubuque's effective property tax rate is 1.51%, which is above the Iowa average of 1.51% and above the national average of 1.08%. On a $265K property, annual taxes are approximately $4,002 ($333/mo). Higher property taxes are one of the largest operating expenses — model this carefully.
Full Dubuque Analysis →Cap Rate CalculatorBRRRR Calculator

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More Dubuque Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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