Real Estate Investing in Grafton, Iowa (50440)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 50440 (Grafton, IA)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 10.4% vacancy may signal weakening demand.
• 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 Grafton, IA (50440)?
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Market Analysis: 50440 Grafton
On the rental side, ZIP 50440 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $185K median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $185K asset, 50440 is the wrong submarket. If the plan prices in friction, the yield can still work.
The gap between 50440 and stronger Grafton ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
A durable renter share of 40% in 50440 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Distressed ZIPs reward experience. healthy returns are possible in 50440, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Grafton:
Market Trends
Home Value History (with trend line)
📊 How Does 50440 Compare?
| Metric | 50440 | Grafton | Mason City, IA | Iowa |
|---|---|---|---|---|
| Home Value | $185,006 | $185,006 | N/A | $227,232 |
| 5-Year CAGR | 7.9% | 7.9% | N/A | 6.0% |
| Avg Rent | $900 | $900 | N/A | - |
| Cap Rate | 3.8% | 3.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 50440 (Grafton, IA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $185,006 |
| Monthly Rent | $900 |
| Price-to-Rent | 17.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.8% |
| Cap Rate | 3.8% |
| 5-Year IRR | 11.7% |
📈 Home Appreciation
| 1-Year | +12.0% ▲ |
| 3-Year CAGR | +7.9% ▲ |
| 5-Year CAGR | +7.9% ▲ |
| 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 (3.8%). 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 50440
Population: 275
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
Should investors consider Grafton, IA?
With a 3.0/5 investability score, Grafton, IA ranks as a solid market for rental property investors. Median prices of $185K and rents of $900/mo drive the underlying numbers.
How much do tenants pay in Grafton, IA?
Expect rents around $900/mo per month in Grafton, IA. With home values at $185K, the yield math works out to reasonable levels for rental investors.
Which investment style suits Grafton, IA?
A careful cash-flow rentals with hands-on management strategy Grafton, IA best. The market produces consistent results for that approach at the $185K price point.
What is the typical vacancy rate in Grafton, IA?
Occupancy in Grafton, IA runs reliable with elevated vacancy. Well-priced units at $900/mo lease on reasonable timelines.
What does house hacking look like in Grafton, IA?
For house hackers, Grafton, IA is a challenging. The $900/mo rent on a unit helps defray the mortgage on a $185K property.
You know 50440 now. You don’t know where it ranks.
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How 50440 ranks in Mason City, IA
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