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MarketsIowaMuscatine

Cap Rate Analysis: Muscatine, IA

Investment metrics, interactive calculators, and data-driven analysis for Muscatine 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 $190,000 median price and $880/mo median rent
Est. Cap Rate
2.94%
1% Rule
0.46%
Fails
GRM
18.0x
Price / Income
3.8x

Market Data

Median Home Price$190,000
Median Monthly Rent$880
Property Tax Rate1.51%
Population50,000
Population Growth0.4% / yr
Median Household Income$49,771
Vacancy Rate5.6%
Annual Appreciation2.3%

Cap Rate Calculator — Muscatine

Pre-filled with Muscatine 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
2.34%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$4,449
net operating income
Gross Rent Multiplier
18.0x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$371
before debt service
Annual Breakdown
Gross Rental Income$10,560
Less Vacancy−$591
Effective Income$9,969
Less Operating Expenses−$5,520
Net Operating Income$4,449
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Cash-on-Cash Return — Muscatine

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

$
$47,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.45%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$53,200
$47,500 down + $5,700 closing
Monthly Mortgage
$929
on $143K loan
Monthly Cash Flow
$-419
after all expenses
Annual Cash Flow
$-5,028
before taxes
Cash Flow Breakdown
Monthly Rent$880
Less Expenses−$370
Less Mortgage−$929
Monthly Cash Flow$-419

Is Muscatine a Good Place to Invest in Rental Property?

Muscatine, 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 $190,000 paired with median rents of $880/mo produces an estimated cap rate of 2.94%.

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 3.8x, homes cost about 3.8 times the local median income of $49,771. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. 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, Muscatine 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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