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Iowa City, IA Investment Data and Rental Metrics
Investment Data & Rental Metrics
LTR & STR financial performance, market growth indicators, and school ratings.
LTR Financial Performance
Median Price
LTR Rent
$1,685
Monthly Cash Flow
-$284
Principal + Equity
$1,227
Annual Total Gain
$11,316
Cash on Cash
-4.61%
Net ROI %
STR Financial Performance
Median Price
Avg. Daily Rate
$193
Occupancy Rate
50%
Monthly Revenue
$1,911
Monthly Cash Flow
-$344
Principal + Equity
$1,227
Annual Total Gain
$10,590
Cash on Cash %
-5.59%
Net ROI %
Market Health & Growth
Median Income
$57,533
Population
75,264
LTR Renter %
53.69%
Forecast (1 yr)
0.87%
Appreciation (1 yr)
4.31%
Appreciation (5 yr)
27.98%
Appreciation (10 yr)
48.81%
Job Growth
2.55%
LTR Rentability
Moderate
STR Demand
61
STR Rentals
207
Top Public Schools
AWest Senior High School
BLiberty High School
B
B
B
Market Grades and Information
Best Places to Live Ranking
Public school quality, cost of living, commute, and lifestyle ratings.
A-
Overall
Top-level market grade
Best Suburbs to Live in Iowa
#12out of 48 markets
Most Diverse Suburbs in Iowa
#5out of 48 markets
Best Suburbs for Young Professionals in Iowa
#3out of 48 markets
B
Public School
C
Crime And Safety
C
Housing
A
Nightlife
A-
Good For Families
Diversity
Jobs
Weather
Cost Of Living
Health And Fitness
Outdoor Activities
Commute
Short-Term Rental (STR) Regulations
Local rules and guidelines for operating short-term rentals in Iowa City, IA.
In Iowa City, IA, Short Term Rental (STR) regulations are governed by the city's Zoning Code. Investors looking to purchase a property for STR purposes should be aware of the following regulations:
1. Zoning Restrictions: Iowa City has specific zoning regulations that dictate where STRs are allowed to operate. Investors should ensure that the property they are considering purchasing is located in a zone that permits short term rentals.
2. Licensing Requirements: Iowa City requires STR operators to obtain a Short Term Rental Permit before renting out their property. This permit must be renewed annually and comes with a fee. Investors should factor in the cost of obtaining and renewing this permit when considering purchasing a property for STR purposes.
3. Occupancy Limits: Iowa City imposes occupancy limits on STRs, which vary depending on the size of the property. Investors should be aware of these limits and ensure that they comply with them when renting out their property.
4. Safety Regulations: Iowa City has safety regulations in place for STRs, including requirements for smoke detectors, carbon monoxide detectors, and fire extinguishers. Investors should ensure that their property meets these safety standards before renting it out.
5. Noise Regulations: Iowa City has noise regulations in place to ensure that STRs do not disturb the peace and quiet of residential neighborhoods. Investors should be aware of these regulations and take steps to minimize noise disturbances from their property.
6. Taxation: Iowa City imposes a Hotel/Motel Tax on short term rentals, which must be collected and remitted by the property owner. Investors should be aware of their tax obligations and ensure that they comply with them when renting out their property.
Overall, investors looking to purchase a property for Short Term Rental purposes in Iowa City should familiarize themselves with the city's regulations and ensure that they are in compliance before renting out their property. Failure to comply with these regulations can result in fines and penalties, so it is important to do thorough research and due diligence before making an investment in this market.
Market Trends Over Time
Explore 25 years of market data for Iowa City, IA, including median property prices, long-term rental rates, and days on market — identify growth potential and gauge market stability.
Median Price
Median Rent
Days on Market
Nearest Markets
Explore nearby investment markets close to Iowa City, IA.
The LTR Genie Score of Iowa City, IA is 59 and STR Genie Score is 48, indicating a moderate rating for both long-term rental and short-term rental investments. The LTR Rentability is moderate, with a LTR Net ROI of 15.3%, while the STR Net ROI is slightly lower at 14.32%. The 1-Year Price Appreciation Forecast is 0.87%, suggesting stable growth in property values. The STR Occupancy rate is 50.0%, with a revenue of $1911.
The LTR Genie Score is higher than the STR Genie Score, indicating that long-term rental investments may be more favorable in Iowa City, IA compared to short-term rentals. This is supported by the higher LTR Net ROI and Rentability metrics. However, the moderate scores for both rental strategies suggest that investors may need to carefully evaluate the market dynamics before making a decision.
Iowa City, IA is home to the University of Iowa, which can be a significant driver of rental demand, especially for long-term rentals targeting students and faculty. The stable price appreciation forecast suggests a steady real estate market, making it a potentially attractive option for investors looking for a reliable income stream.
In conclusion, Iowa City, IA presents opportunities for both long-term and short-term rental investments, with a slight preference towards long-term rentals based on the Genie Scores. Investors should conduct further research and analysis to determine the best strategy based on their investment goals and risk tolerance.
