Real Estate Investing in Davis City, Iowa (50065)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 50065 (Davis City, IA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 20.1% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Davis City, IA (50065)?
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Market Analysis: 50065 Davis City
On the rental side, ZIP 50065 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $178K median. It rewards specialists, not generalists.
The investment case in 50065 is significant only for operators who understand what they are buying. A $178K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Nearby ZIPs in Davis City have seen price recovery that 50065 has not matched. Decatur data supports the view that the spread is structural rather than temporary.
The 50065 ZIP's population of 500 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reports the need for careful underwriting.
Experienced landlords with local relationships tend to find 50065 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Davis City:
Market Trends
Home Value History (with trend line)
📊 How Does 50065 Compare?
| Metric | 50065 | Davis City | Iowa |
|---|---|---|---|
| Home Value | $177,984 | $177,984 | $227,232 |
| 5-Year CAGR | N/A | N/A | 6.0% |
| Avg Rent | $1,242 | $1,242 | - |
| Cap Rate | 5.4% | 5.4% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 50065 (Davis City, IA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $177,984 |
| Monthly Rent | $1,242 |
| Price-to-Rent | 11.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.4% |
| Cap Rate | 5.4% |
| 5-Year IRR | 11.1% |
📈 Home Appreciation
| 1-Year | +22.1% ▲ |
| 3-Year CAGR | +5.7% ▲ |
| 5-Year CAGR | N/A |
| 10-Year CAGR | N/A |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (5.4%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 50065
Population: 500
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Nearby Colleges & Universities
Frequently Asked Questions
How expensive is real estate in Davis City, IA?
The median home value in Davis City, IA is roughly $178K. That puts it reasonable relative to the IA statewide average.
Can I house hack in Davis City, IA?
Davis City, IA offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,242/mo rent level.
Is rental property easy to operate in Davis City, IA?
Landlord-friendliness in Davis City, IA is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
How tight is the rental market in Davis City, IA?
Vacancy risk in Davis City, IA is elevated. That supports stable cash flow for typical rental holds.
How much rent can I charge in Davis City, IA?
Davis City, IA rentals go for roughly $1,242/mo a month. That puts gross yield in solid territory relative to $178K acquisition costs.
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