Updated 2026 · Based on median market data for Waterloo, IA
The median monthly rent in Waterloo, IA is $920, translating to $11,040 in annual gross rental income per unit. The rent-to-price ratio is 0.63% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Waterloo spend approximately 24% of the local median household income ($46,200) on rent. This is well below the 30% threshold, suggesting significant headroom for rent increases. Tenants can afford to pay more, which is bullish for landlords.
The vacancy rate in Waterloo is 6.5%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0% annually means demand is flat to declining — focus on properties in the strongest neighborhoods.
Waterloo's GRM (price divided by annual rent) is 13.1x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $920/mo, a single-family rental in Waterloo generates approximately $11,040 in gross annual income. After accounting for 6.5% vacancy ($718 lost), property taxes of $2,175, insurance (~$580), and maintenance (~$580), the estimated NOI is $6,987 per year, or $582/mo.