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MarketsIowaFairfieldRental Property Investment Guide

Rental Property Investment Guide: Fairfield, IA

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

Cap Rate
2.79%
Median Price
$180K
Rent/Mo
$810
1% Rule
0.45%
Fails

Market Snapshot

Fairfield sits in the Midwest with a population of 50,000 growing at 0.4% annually. The median home costs $180,000 while rents average $810/mo, producing an estimated cap rate of 2.79%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

Fairfield works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 2.79% 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 Fairfield

Target properties priced 15-25% below the $180,000 median — around $144,000 or less. At this price point with $810/mo rents, your cap rate improves to roughly 4.1%. Factor in 1.51% property taxes ($2,718/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 $1,284.

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 Fairfield property using our cap rate calculator (pre-filled with Fairfield data). Compare Fairfield 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 Fairfield Compares

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

Metric
Fairfield
Iowa Avg
National Avg
Cap Rate
2.79%
3.14%
3.81%
Median Price
$180K
$214K
$333K
Median Rent
$810
$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
Fairfield, IA
2.8%
$180K
$810
1.51%
Battle Creek, MI
4.9%
$180K
$1,150
1.46%
Emporia, KS
2.7%
$180K
$770
1.38%
Kirksville, MO
4.0%
$180K
$970
1.25%
Lima, OH
4.9%
$180K
$1,170
1.58%

Frequently Asked Questions

Is Fairfield, IA a good place to invest in rental property?
Fairfield has an estimated cap rate of 2.79%, which is below the national average of 3.81%. With median home prices at $180K and rents of $810/mo, pure cash flow investing in Fairfield 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 Fairfield?
The estimated cap rate for Fairfield is 2.79%, based on median home prices of $180K, median rents of $810/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 Fairfield?
The median home price in Fairfield is $180,000, which is 46% below the national average of $333,419. A 20% down payment would be approximately $36,000. Investment properties in Fairfield range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Fairfield property taxes for investors?
Fairfield'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 $180K property, annual taxes are approximately $2,718 ($227/mo). Higher property taxes are one of the largest operating expenses — model this carefully.
Full Fairfield Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Fairfield & Related Markets

More Fairfield Guides

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

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