Best Rental Markets in Iowa (2026)
Data updated August 2026 · 37 cities screened
Iowa's median home value is $239,546 with a median rent of $981/mo across our 37 investable cities. Its 4.9% annual rent-to-price ratio sits near the national median, neither a pure cash-flow nor a pure appreciation play. Entry prices run well below the national state median of $345,226.
Top Iowa cities for cash flow
Ranked by annual rent ÷ median home value. Higher means the rent check is bigger relative to what you paid, the first screen for a cash-flowing rental.
| # | City | Median Home Value | Median Rent | Rent / Price | Population |
|---|---|---|---|---|---|
| 1 | Burlington | $128,671 | $1,000/mo | 9.3% | 23,728 |
| 2 | Ottumwa | $125,640 | $833/mo | 8.0% | 25,430 |
| 3 | Waterloo | $147,779 | $945/mo | 7.7% | 67,008 |
| 4 | Fort Dodge | $132,254 | $834/mo | 7.6% | 24,827 |
| 5 | Sioux City | $202,481 | $1,274/mo | 7.6% | 86,101 |
| 6 | Cedar Rapids | $212,086 | $1,290/mo | 7.3% | 137,264 |
| 7 | Council Bluffs | $229,837 | $1,350/mo | 7.0% | 62,586 |
| 8 | Mason City | $160,991 | $925/mo | 6.9% | 27,050 |
| 9 | Clinton | $135,834 | $775/mo | 6.8% | 24,322 |
| 10 | Marshalltown | $180,075 | $1,024/mo | 6.8% | 27,626 |
Most affordable entry points
Lowest median home values, where a first deal or a limited budget goes furthest. Cheap is not automatically good: check rent and condition before assuming a bargain.
| # | City | Median Home Value | Median Rent | Rent / Price | Population |
|---|---|---|---|---|---|
| 1 | Fort Madison | $114,173 | $641/mo | 6.7% | 10,133 |
| 2 | Ottumwa | $125,640 | $833/mo | 8.0% | 25,430 |
| 3 | Burlington | $128,671 | $1,000/mo | 9.3% | 23,728 |
| 4 | Fort Dodge | $132,254 | $834/mo | 7.6% | 24,827 |
| 5 | Clinton | $135,834 | $775/mo | 6.8% | 24,322 |
| 6 | Waterloo | $147,779 | $945/mo | 7.7% | 67,008 |
| 7 | Mason City | $160,991 | $925/mo | 6.9% | 27,050 |
| 8 | Marshalltown | $180,075 | $1,024/mo | 6.8% | 27,626 |
| 9 | Muscatine | $195,204 | $845/mo | 5.2% | 23,489 |
| 10 | Davenport | $196,283 | $971/mo | 5.9% | 100,913 |
Fastest rent growth
Year-over-year change in Zillow's observed rent index. Rising rents lift future cash flow, but verify the driver (jobs and population, not a one-year blip).
| # | City | Rent Growth YoY | Median Rent | Median Home Value |
|---|---|---|---|---|
| 1 | Cedar Rapids | 14.8% | $1,290/mo | $212,086 |
| 2 | Coralville | 11.3% | $1,265/mo | $261,923 |
| 3 | Marion | 11.2% | $1,203/mo | $279,823 |
| 4 | Iowa City | 9.0% | $1,269/mo | $303,890 |
| 5 | Bettendorf | 7.7% | $1,439/mo | $339,607 |
| 6 | Fort Dodge | 7.3% | $834/mo | $132,254 |
| 7 | Waterloo | 5.5% | $945/mo | $147,779 |
| 8 | Johnston | 5.1% | $1,443/mo | $399,596 |
| 9 | Pleasant Hill | 4.9% | $1,364/mo | $304,077 |
| 10 | Davenport | 4.8% | $971/mo | $196,283 |
Iowa fundamentals for landlords
The state-level numbers that shape every deal here: what taxes and law take out of the rent check, and whether demand is growing.
Annual tax as a share of home value (Tax Foundation). Comes straight out of cash flow.
Top marginal state rate (Tax Foundation), the rate your rental profit is taxed at in-state.
Composite of rent control, eviction timeline, deposit caps, and notice rules in state statute.
Census ACS. People moving in = housing demand; sustained decline is the risk flag.
BLS, latest month. Tenant quality and vacancy risk track the job market.
Census BPS, latest year. Heavy new supply competes with your unit at renewal time.
FBI Crime Data Explorer. Affects insurance, tenant pool, and appreciation.
FEMA declarations, a proxy for insurance cost and climate exposure.
Frequently asked questions
What is the best rental market in Iowa for cash flow?
By rent-to-price ratio, Burlington leads Iowa at 9.3%, with a median rent of $1,000/mo against a $128,671 median home value (Zillow, August 2026).
Does Iowa pass the 1% rule?
At state medians of $981 rent on a $239,546 home, monthly rent is 0.41% of the purchase price, so the median Iowa deal falls short of the 1% screen. Individual cities can still clear it. See the table above.
Is Iowa landlord-friendly?
Iowa scores 70/100 on our landlord-friendliness composite (rent control status, eviction timeline, deposit caps, notice requirements), friendlier to owners than 50% of states.
How high are property taxes in Iowa?
The effective property tax rate is 1.57% of home value per year (Tax Foundation). On the median $239,546 home, that is roughly $3,761 a year off your cash flow.
Compare with similar states
South Carolina · Maryland · Arizona · North Carolina · Missouri
About this data: compiled by RehabRange from Zillow Research (ZHVI home values, ZORI rents), U.S. Census Bureau (ACS population and income, Building Permits Survey), Bureau of Labor Statistics (unemployment), FBI Crime Data Explorer, FEMA, and Tax Foundation. Last updated August 2026.
RehabRange is built by Mitchell Haughton, a practicing eastern-Connecticut real estate investor. These are the same screens he runs before walking a property. How we rank markets