Real Estate Investing in Colo, Iowa

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1 ZIP codes • Population: 1,122 • Story County

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Should you buy in Colo, IA? Our answer, based on the numbers below.

🏠 For Homebuyers
GOOD FIT
Grade B (81/100)

Solid choice — values are growing steadily and the market is stable enough to buy with confidence.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
CLEAN

No major risk flags on the data we track.

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3.0/ 5

Investability

Citywide average

4.0/ 5

Appreciation

7.4% 5yr CAGR

5.0/ 5

Landlord Climate

Regulatory friendliness

🏦 30-yr Fixed Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS
Avg Investability
Avg Home Value $263,159
Avg Monthly Rent $1,017
ZIP Codes 1

Investing in Colo Real Estate

Colo, IA covers 1 ZIP codes and a population but the investment metrics here are sluggish — this is not a market to enter casually.

A 3.0 rating and a 5-year CAGR of 0.0% are the kinds of numbers that warrant real local underwriting, not spreadsheet tourism. Colo is in that category.

Rents in Colo at $1,017/mo have struggled to keep pace with cost increases, and vacancy has risen in pockets — a dynamic that compresses realized returns well below headline cap rates.

Distressed-leaning demographics in Colo — soft income growth, high rent burden, population shifts — are among the reasons the ★★★☆☆ rating sits where it does.

A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Best ZIP codes in Ames, IA

Colo is part of this metro. Every ZIP in it, ranked. Free.

Cash Flow → Appreciation → Affordable →

Landlord Ground Truth

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Avg Home Value
$263,159
Avg Monthly Rent
$1,017
1% Rule
✗ Below
Landlord Friendly (IA)

📉 Market Crash Risk Index

Based on Ames, IA metro

2/10
Low Risk
Price YoY
0/3
N/A
Rent YoY
0/2
N/A
Below List
1/3
58%
Days Pending
1/2
50 days

View all metro crash risk rankings →

⚖️ Balanced Market — Ames, IA metro
50
Days to pending
9.1%
Listings with price cuts
0.0%
Sale-to-list ratio
📅 Data as of August 29, 2026 — updated weekly

ZIP Codes in Colo, IA

Screen every ZIP in Colo

Filter Colo’s ZIPs by cap rate, vacancy, appreciation and 30+ more criteria, and export your shortlist to CSV — with the Investor plan ($19/mo).

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Frequently Asked Questions About Colo, IA

What real estate strategy is ideal for Colo, IA?

For Colo, IA, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.

Are rents high in Colo, IA?

Colo, IA rentals go for roughly $1,017/mo a month. That puts gross yield in solid territory relative to $263K acquisition costs.

Is it easy to find good tenants in Colo, IA?

Tenant demand in Colo, IA is solid. The local workforce $1,017/mo rents across most rental classes.

Should investors worry about vacancy in Colo, IA?

Colo, IA sees elevated vacancy, which is reasonable relative to the broader IA rental market.

What are home prices like in Colo, IA?

Median home price in Colo, IA is near $263K, with a 5-year CAGR of 0.0%. Prices have been predictable and supportive of buy-and-hold strategies.

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