Real Estate Investing in Elma, Iowa (50628)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 50628 (Elma, IA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
No major risk flags on the data we track.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Elma, IA (50628)?
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Market Analysis: 50628 Elma
ZIP 50628 in Elma, IA carries a impressive set of headwinds. Home values near $226K and rents of $828/mo sit inside a market where underwriting has to be tight.
Rent of $828/mo on a $226K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 50628 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Elma have seen price recovery that 50628 has not matched. Howard County data supports the view that the spread is structural rather than temporary.
Demographically, 50628 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Strategically, 50628 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Elma:
Property Strategy for 50628
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $209,848 | $1,270 | 4.4% | — | $69,949 |
| 4BR | $224,575 | $1,470 | 4.7% | — | $56,144 |
Market Trends
Home Value History (with trend line)
📊 How Does 50628 Compare?
| Metric | 50628 | Elma | Iowa |
|---|---|---|---|
| Home Value | $225,695 | $225,695 | $227,232 |
| 5-Year CAGR | N/A | N/A | 6.0% |
| Avg Rent | $828 | $828 | - |
| Cap Rate | 2.9% | 2.9% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 50628 (Elma, IA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $225,695 |
| Monthly Rent | $828 |
| Price-to-Rent | 22.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.9% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +11.4% ▲ |
| 3-Year CAGR | +6.5% ▲ |
| 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 (2.9%). 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 50628
Population: 1,309
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
Frequently Asked Questions
Can owner-occupants cash flow in Elma, IA?
Elma, IA offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $828/mo rent level.
What is the renter demographic in Elma, IA?
Elma, IA offers a predictable renter base at the $828/mo rent level. Tenant turnover is reasonable for well-managed properties.
What is it like being a landlord in Elma, IA?
IA ranks as a landlord-friendly state for landlord-tenant law. Elma generally follows the statewide framework, so landlords face reasonable operating rules.
What are rental rates like in Elma, IA?
Rental rates in Elma, IA average $828/mo. Tenant demand and $226K home values make the yield look reasonable by investor standards.
How quickly do rentals get leased in Elma, IA?
Vacancy risk in Elma, IA is elevated. That supports steady cash flow for typical rental holds.
You know 50628 now. You don’t know where it ranks.
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