Is Iowa good for rental property?

1 of 72 ZIP codes with full Zillow data in this state are cash-flow positive; the median gross yield is 5.5%. Cash flow assumes the typical home in each ZIP, 7.78% with 25% down and the default costs.

What is the average property tax rate in Iowa?

About 1.39% of value statewide (Census ACS median taxes paid over median value). Rates vary widely by county; the county table above links to each.

What does landlord insurance cost in Iowa?

NAIC's 2023 average homeowners (HO-3) premium in Iowa was $1,342. Landlord policies usually cost more, so this site assumes $1,610 a year. Quotes depend on the property, coverage and claims history.

Rental numbers for Iowa

1 of 72 ZIP codes with full Zillow data in this state are cash-flow positive; the median gross yield is 5.5%.

Gross yield: n/a; no Zillow rent index
Median ZIP yield: 5.5%; 72 ZIPs with full data
Cash flow: n/a; at 7.78%, 25% down
Typical price: $240,000; Zillow ZHVI, Aug 2026
Typical rent: $1,182/mo; median across 72 tier A ZIPs, Aug 2026

Counties

Gross yield uses Zillow county rent where published, otherwise the median ZIP yield


Des Moines County	$151,000	$1,006	8.0%	3.4%	-$382	n/a
Woodbury County	$209,000	$1,268	7.3%	3.1%	-$582	+3.6%
Webster County	$141,000	$826	7.0%	2.6%	-$452	+6.6%
Pottawattamie County	$243,000	$1,350	6.7%	2.6%	-$784	+2.4%
Fayette County	$158,000	$866	6.6%	2.4%	-$533	n/a
Lee County	$126,000	$688	6.6%	2.1%	-$460	n/a
Black Hawk County	$188,000	$1,011	6.5%	2.3%	-$657	+4.4%
Hardin County	$148,000	$795	6.5%	2.2%	-$528	n/a
Linn County	$240,000	$1,274	6.4%	2.2%	-$849	+14.2%
Hamilton County	$175,000	$900	6.2%	2.2%	-$624	n/a
Marshall County	$197,000	$987	6.0%	2.0%	-$727	+2.8%
Cerro Gordo County	$205,000	$980	5.7%	1.8%	-$799	n/a
Clinton County	$182,000	$862	5.7%	1.6%	-$747	n/a
Montgomery County	$143,000	$650	5.5%	1.0%	-$652	n/a
Johnson County	$312,000	$1,400	5.4%	1.7%	-$1,244	+8.0%
Bremer County	$259,000	$1,150	5.3%	1.8%	-$1,019	n/a
Polk County	$281,000	$1,248	5.3%	1.4%	-$1,185	+1.6%
Dallas County	$356,000	$1,553	5.2%	1.7%	-$1,406	+2.4%
Muscatine County	$206,000	not published	5.2%	n/a	n/a	n/a
Scott County	$253,000	$1,053	5.0%	1.3%	-$1,097	+4.6%
Jasper County	$233,000	$968	5.0%	1.3%	-$1,011	n/a
Story County	$295,000	$1,212	4.9%	1.4%	-$1,256	+3.3%
Jefferson County	$184,000	$743	4.9%	0.9%	-$843	n/a
Dubuque County	$280,000	$1,068	4.6%	1.2%	-$1,228	+3.2%
Warren County	$323,000	$1,203	4.5%	1.0%	-$1,482	+2.4%
Marion County	$275,000	$1,019	4.4%	1.1%	-$1,237	+0.8%
Boone County	$234,000	$820	4.2%	0.6%	-$1,139	n/a
Dickinson County	$386,000	$1,350	4.2%	1.3%	-$1,654	n/a
Floyd County	$164,000	$575	4.2%	0.4%	-$837	n/a
Benton County	$292,000	$625	2.6%	-0.6%	-$1,720	n/a
Adair County	$206,000	not published	n/a	n/a	n/a	n/a
Adams County	$165,000	not published	n/a	n/a	n/a	n/a
Allamakee County	$266,000	not published	n/a	n/a	n/a	n/a
Appanoose County	$119,000	not published	n/a	n/a	n/a	n/a
Audubon County	$164,000	not published	n/a	n/a	n/a	n/a
Buchanan County	$227,000	not published	n/a	n/a	n/a	n/a
Buena Vista County	$189,000	not published	n/a	n/a	n/a	n/a
Butler County	$194,000	not published	n/a	n/a	n/a	n/a
Calhoun County	$160,000	not published	n/a	n/a	n/a	n/a
Carroll County	$213,000	not published	n/a	n/a	n/a	n/a
Cass County	$165,000	not published	n/a	n/a	n/a	n/a
Cedar County	$259,000	not published	n/a	n/a	n/a	n/a
Cherokee County	$162,000	not published	n/a	n/a	n/a	n/a
Chickasaw County	$221,000	not published	n/a	n/a	n/a	n/a
Clarke County	$200,000	not published	n/a	n/a	n/a	n/a
Clay County	$198,000	not published	n/a	n/a	n/a	n/a
Clayton County	$302,000	not published	n/a	n/a	n/a	n/a
Crawford County	$187,000	not published	n/a	n/a	n/a	n/a
Davis County	$238,000	not published	n/a	n/a	n/a	n/a
Decatur County	$171,000	not published	n/a	n/a	n/a	n/a
Delaware County	$252,000	not published	n/a	n/a	n/a	n/a
Emmet County	$156,000	not published	n/a	n/a	n/a	n/a
Franklin County	$159,000	not published	n/a	n/a	n/a	n/a
Fremont County	$188,000	not published	n/a	n/a	n/a	n/a
Greene County	$177,000	not published	n/a	n/a	n/a	n/a
Grundy County	$221,000	not published	n/a	n/a	n/a	n/a
Guthrie County	$279,000	not published	n/a	n/a	n/a	n/a
Hancock County	$188,000	not published	n/a	n/a	n/a	n/a
Harrison County	$228,000	not published	n/a	n/a	n/a	n/a
Henry County	$195,000	not published	n/a	n/a	n/a	n/a
Howard County	$209,000	not published	n/a	n/a	n/a	n/a
Humboldt County	$168,000	not published	n/a	n/a	n/a	n/a
Ida County	$193,000	not published	n/a	n/a	n/a	n/a
Iowa County	$236,000	not published	n/a	n/a	n/a	n/a
Jackson County	$243,000	not published	n/a	n/a	n/a	n/a
Jones County	$246,000	not published	n/a	n/a	n/a	n/a
Keokuk County	$150,000	not published	n/a	n/a	n/a	n/a
Kossuth County	$175,000	not published	n/a	n/a	n/a	n/a
Louisa County	$175,000	not published	n/a	n/a	n/a	n/a
Lucas County	$180,000	not published	n/a	n/a	n/a	n/a
Lyon County	$271,000	not published	n/a	n/a	n/a	n/a
Madison County	$339,000	not published	n/a	n/a	n/a	n/a
Mahaska County	$205,000	not published	n/a	n/a	n/a	n/a
Mills County	$286,000	not published	n/a	n/a	n/a	n/a
Mitchell County	$220,000	not published	n/a	n/a	n/a	n/a
Monona County	$165,000	not published	n/a	n/a	n/a	n/a
Monroe County	$176,000	not published	n/a	n/a	n/a	n/a
O'Brien County	$197,000	not published	n/a	n/a	n/a	n/a
Osceola County	$181,000	not published	n/a	n/a	n/a	n/a
Page County	$152,000	not published	n/a	n/a	n/a	n/a
Palo Alto County	$175,000	not published	n/a	n/a	n/a	n/a
Plymouth County	$295,000	not published	n/a	n/a	n/a	n/a
Pocahontas County	$102,000	not published	n/a	n/a	n/a	n/a
Poweshiek County	$227,000	not published	n/a	n/a	n/a	n/a
Ringgold County	$186,000	not published	n/a	n/a	n/a	n/a
Sac County	$177,000	not published	n/a	n/a	n/a	n/a
Shelby County	$216,000	not published	n/a	n/a	n/a	n/a
Sioux County	$312,000	not published	n/a	n/a	n/a	n/a
Tama County	$176,000	not published	n/a	n/a	n/a	n/a
Taylor County	$145,000	not published	n/a	n/a	n/a	n/a
Union County	$162,000	not published	n/a	n/a	n/a	n/a
Van Buren County	$195,000	not published	n/a	n/a	n/a	n/a
Wapello County	$132,000	not published	n/a	n/a	n/a	n/a
Washington County	$237,000	not published	n/a	n/a	n/a	n/a
Wayne County	$147,000	not published	n/a	n/a	n/a	n/a
Winnebago County	$159,000	not published	n/a	n/a	n/a	n/a
Winneshiek County	$320,000	not published	n/a	n/a	n/a	n/a
Worth County	$194,000	not published	n/a	n/a	n/a	n/a
Wright County	$136,000	not published	n/a	n/a	n/a	n/a

Highest-yield ZIP codes in Iowa

Tier A only: Zillow value against Zillow rent

ZIP	Typical price	Rent	Gross yield	Cash flow /mo
52401Cedar Rapids	$123,000	$1,463	14.3%	+$156
52802Davenport	$111,000	$1,063	11.4%	-$58
50703Waterloo	$96,000	$882	11.0%	-$94
52601Burlington	$129,000	$1,000	9.3%	-$234
50316Des Moines	$165,000	$1,261	9.2%	-$289
51501Council Bluffs	$188,000	$1,371	8.8%	-$377
52404Cedar Rapids	$202,000	$1,453	8.6%	-$406
50317Des Moines	$193,000	$1,245	7.7%	-$522
50501Fort Dodge	$132,000	$835	7.6%	-$395
50314Des Moines	$163,000	$1,016	7.5%	-$459

The top 50 in Iowa

Trends

Five years to August 2026

Price, 12 months: +3.5%
Rent, 12 months: n/a
Rent minus price growth: n/a
Property tax: 1.39%; effective rate, ACS 2024

Typical value (Zillow ZHVI)Indexed to 100 at Aug 2021

Show the numbers

Month	Typical value
Aug 2021	$189,995
Aug 2022	$210,817
Aug 2023	$216,563
Aug 2024	$223,957
Aug 2025	$231,346
Aug 2026	$239,547

Costs that vary by state

Effective property tax: 1.39%; Census ACS 2024
Landlord insurance default: $1,610/yr; NAIC HO-3 $1,342 x 1.2
Permits per 1,000 households: 9.8; last 12 months
Median typical price: $261,000; tier A ZIPs

Questions

Is Iowa good for rental property?: 1 of 72 ZIP codes with full Zillow data in this state are cash-flow positive; the median gross yield is 5.5%. Cash flow assumes the typical home in each ZIP, 7.78% with 25% down and the default costs.
What is the average property tax rate in Iowa?: About 1.39% of value statewide (Census ACS median taxes paid over median value). Rates vary widely by county; the county table above links to each.
What does landlord insurance cost in Iowa?: NAIC's 2023 average homeowners (HO-3) premium in Iowa was $1,342. Landlord policies usually cost more, so this site assumes $1,610 a year. Quotes depend on the property, coverage and claims history.

Sources and method

Zillow Home Value Index (ZHVI), mid tier, smoothed and seasonally adjusted
Zillow Research. Read: 2026-08.
Typical home value by ZIP, county, metro and state, and the price trend.
Zillow Observed Rent Index (ZORI), all homes plus multifamily, smoothed
Zillow Research. Read: 2026-08.
Typical market rent by ZIP, county and metro, and the rent trend (tier A pages).
HUD Small Area Fair Market Rents, FY2026
US Department of Housing and Urban Development. Read: FY2026.
Rent by bedroom count for every ZIP. The rent used on tier B pages, and a reference on all pages. It is the 40th percentile gross rent, so it runs below market.
American Community Survey 5-year estimates, 2020 to 2024 (B25103 median real estate taxes paid, B25077 median home value, B11001 households)
US Census Bureau. Read: 2020 to 2024.
Effective property tax rate (median taxes paid divided by median value) by ZIP code tabulation area, county and state; households for the permits ratio.
Freddie Mac Primary Mortgage Market Survey, 30-year fixed (FRED series MORTGAGE30US)
Freddie Mac via the Federal Reserve Bank of St. Louis. Read: 2026-09-24.
The weekly 30-year rate. The site adds a disclosed investor premium to it for the loan payment.
Building Permits Survey, county monthly files
US Census Bureau. Read: 2025-09 to 2026-08.
New housing units permitted in the last 12 months per 1,000 households, a supply-pressure signal.
NAIC Homeowners Insurance Report, data for 2023
National Association of Insurance Commissioners. Read: 2023.
Average HO-3 homeowners premium by state, multiplied by 1.2 as a landlord-policy assumption.

Data: Zillow Research (ZHVI, ZORI), HUD, US Census Bureau, Freddie Mac. Every formula is on the methodology page.

Estimates from public data for a typical property. Not investment, tax or legal advice. Your property, financing and costs will differ.