Investment metrics, interactive calculators, and data-driven analysis for Iowa City rental properties.
Pre-filled with Iowa City medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Iowa City.
Iowa City, IA has a population of 74,000 and has been growing at 0.6% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $245,000 paired with median rents of $1,200/mo produces an estimated cap rate of 3.33%.
Property taxes at 1.48% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.5% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 5.0x, homes cost about 5.0 times the local median income of $48,600. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% 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, Iowa City 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.