Real Estate Investing in Ottumwa, Iowa

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

2 ZIP codes • Population: 31,054 • Wapello County

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

🏠 For Homebuyers
MIXED
Grade C (66/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 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
1 flag
  • Elevated vacancy: 10.5% vacancy may signal weakening demand.

What’s happening in Ottumwa, IA?

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3.0/ 5

Investability

Citywide average

3.0/ 5

Appreciation

6.8% 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 $182,621
Avg Monthly Rent $831
ZIP Codes 2

Investing in Ottumwa Real Estate

Ottumwa (Iowa) spans 2 ZIPs and roughly a sizable population. unambiguously the fundamentals here skew distressed, with soft rents, soft appreciation, and structural headwinds worth respecting.

Across Ottumwa's 2 ZIPs, fundamentals run underwhelming: thin appreciation, soft rents, and demographic trends that don't obviously reverse in the medium term.

Transaction volume in Ottumwa has thinned in a way that amplifies price discovery risk. On the rental side, investors without local context should treat every number on the page with skepticism.

A an established population with $N/AK household income profile is what makes Ottumwa a challenging rental market — the tenant base is present, but the affordability math is tight.

A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Landlord Ground Truth

Real numbers from people who own or manage rentals in Ottumwa, IA. Anonymous, moderated, never written by AI.

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Avg Home Value
$182,621
Avg Monthly Rent
$831
1% Rule
✗ Below
Landlord Friendly (IA)

📉 Market Crash Risk Index

Based on Ottumwa, IA metro

3/10
Moderate Risk
Price YoY
0/3
N/A
Rent YoY
0/2
N/A
Below List
3/3
79%
Days Pending
0/2
0 days

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☀️ Warm Market — Ottumwa, IA metro
0
Days to pending
7.4%
Listings with price cuts
0.0%
Sale-to-list ratio
📅 Data as of August 29, 2026 — updated weekly

🎓 Colleges & Universities in Ottumwa

1 College 3,236 Students 1,006 Off-Campus Renters
C+
Indian Hills Community College
2-Year Public · 3,236 students
📍 ~1,006 students rent off-campus

Investor Insight: With 1,006 students living off-campus, Ottumwa has substantial rental demand from the college population — typically stable, lease-renewing tenants.

ZIP Codes in Ottumwa, IA

Screen every ZIP in Ottumwa

Filter Ottumwa’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 Ottumwa, IA

What do rentals go for in Ottumwa, IA?

Average rent in Ottumwa, IA is approximately $831/mo per month. Against $183K home values that yields a reasonable rent-to-price ratio.

How expensive is real estate in Ottumwa, IA?

Median home price in Ottumwa, IA is near $183K, with a 5-year CAGR of 0.0%. Prices have been steady and supportive of buy-and-hold strategies.

Is vacancy a concern in Ottumwa, IA?

Rental vacancy in Ottumwa, IA is elevated. Investors should budget normal turnover but not chronic empty units.

What strategy should investors use in Ottumwa, IA?

Investors usually favor careful cash-flow rentals with hands-on management in Ottumwa, IA. With home values at $183K and rents near $831/mo, other strategies can work but produce measured rather than outsized returns.

Is Ottumwa, IA a good market for buy-and-hold investors?

Our data puts Ottumwa, IA at 3.0/5 for investability. Home prices of $183K and rents around $831/mo create a solid backdrop for investor activity.

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