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Iowa Cap Rate Calculator

Calculate cap rates using Iowa market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Iowa averages. Net Operating Income ÷ Property Price

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Property Details

Operating Expenses(Iowa defaults)

Total Annual Expenses$9,846

Iowa Market Context

Avg Cap Rate

7%

Median Price

$228K

Property Tax

1.25%

Vacancy Rate

8%

Local Factors

  • -High property taxes offset by very affordable home prices
  • -Severe weather (hail, tornadoes) drives above-average insurance costs
  • -University towns (Iowa City, Ames) provide reliable student rental demand

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

2.1%

Low
Net Operating Income$4,866
Gross Income$14,712
Total Expenses$9,846
Iowa Avg Cap Rate7%
CAP RATE2.1%
NOI$4,866
Property Tax$2,850
Insurance$2,362
Maintenance$2,280
Management$1,177
Vacancy$1,177

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Iowa rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

Calculate

NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

Calculate

Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

Calculate

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