Real Estate Investing in Merrill, Iowa (51038)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 51038 (Merrill, 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.
- High price-to-rent: Price-to-rent ratio 26.0 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Merrill, IA (51038)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 51038 Merrill
Investors eyeing 51038 need to respect the fundamentals at play. Home values of $292K come alongside slower price movement and elevated management overhead.
The 51038 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Nearby ZIPs in Merrill have seen price recovery that 51038 has not matched. Plymouth County data supports the view that the spread is structural rather than temporary.
On the rental side, 1,512 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The right play in 51038 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Merrill:
Property Strategy for 51038
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $189,371 | $1,040 | 4.0% | +7.0% | $94,686 |
| 3BR | $251,303 | $1,370 | 3.9% | +6.7% | $83,768 |
| 4BR | $321,962 | $1,460 | 3.3% | +7.8% | $80,490 |
Market Trends
Home Value History (with trend line)
📊 How Does 51038 Compare?
| Metric | 51038 | Merrill | Iowa |
|---|---|---|---|
| Home Value | $291,657 | $291,657 | $227,232 |
| 5-Year CAGR | 7.6% | 7.6% | 6.0% |
| Avg Rent | $936 | $936 | - |
| Cap Rate | 2.5% | 2.5% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 51038 (Merrill, IA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $291,657 |
| Monthly Rent | $936 |
| Price-to-Rent | 26.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 10.1% |
📈 Home Appreciation
| 1-Year | +10.9% ▲ |
| 3-Year CAGR | +6.6% ▲ |
| 5-Year CAGR | +7.6% ▲ |
| 10-Year CAGR | +7.1% ▲ |
🏠 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 (2.5%). 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 51038
Population: 1,512
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
What are rental rates like in Merrill, IA?
Average rent in Merrill, IA is approximately $936/mo per month. Against $292K home values that yields a reasonable rent-to-price ratio.
Are landlord laws favorable in Merrill, IA?
Merrill, IA operates under IA law, which is landlord-friendly overall for landlords. Expect even-keeled treatment in typical lease and eviction cases.
Which investment style suits Merrill, IA?
A careful cash-flow rentals with hands-on management strategy Merrill, IA best. The market produces reliable results for that approach at the $292K price point.
Can I live-in-and-rent in Merrill, IA?
House hacking in Merrill, IA is a challenging. With home values around $292K and rents at $936/mo, owner-occupants can offset a meaningful share of PITI.
What is the rental occupancy rate in Merrill, IA?
Merrill, IA vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
You know 51038 now. You don’t know where it ranks.
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