Real Estate Investing in Red Oak, Iowa (51566)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 51566 (Red Oak, 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: 11.1% vacancy may signal weakening demand.
What’s happening in Red Oak, IA (51566)?
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Market Analysis: 51566 Red Oak
ZIP 51566 inside Montgomery County looks affordable on the surface — median value of $136K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $714/mo on a $136K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 51566 sits below the stated 0.0% once reality is priced in.
Statewide comparisons place 51566 among IA's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Demographically, 51566 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.
looks to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Red Oak:
Property Strategy for 51566
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $85,457 | $960 | 8.1% | +8.1% | $42,728 |
| 3BR | $150,092 | $1,320 | 6.3% | +7.7% | $50,031 |
| 4BR | $197,882 | $1,410 | 5.1% | +8.7% | $49,471 |
| 5BR | $264,340 | — | — | +8.0% | $52,868 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 51566 Compare?
| Metric | 51566 | Red Oak | Iowa |
|---|---|---|---|
| Home Value | $136,004 | $136,004 | $227,232 |
| 5-Year CAGR | 5.5% | 5.5% | 6.0% |
| Avg Rent | $714 | $714 | - |
| Cap Rate | 4.1% | 4.1% | - |
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 51566 (Red Oak, IA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $136,004 |
| Monthly Rent | $714 |
| Price-to-Rent | 15.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.3% |
| Cap Rate | 4.1% |
| 5-Year IRR | 9.6% |
📈 Home Appreciation
| 1-Year | +1.5% ▲ |
| 3-Year CAGR | +4.8% ▲ |
| 5-Year CAGR | +5.5% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 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 (4.1%). 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 51566
Population: 7,004
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
🎓 Schools in 51566
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
Is Red Oak in IA worth investing in?
Investors tracking Red Oak, IA will find a 3.0/5 rating supported by $136K median home values and $714/mo rents. That profile suits long-term holders targeting steady returns.
What is the median home value in Red Oak, IA?
Typical homes in Red Oak, IA go for around $136K. The 5-year CAGR of 0.0% consistent price movement.
Do landlords face vacancy issues in Red Oak, IA?
Rental vacancy in Red Oak, IA is elevated. Investors should budget normal turnover but not chronic empty units.
What does house hacking look like in Red Oak, IA?
For house hackers, Red Oak, IA is a challenging. The $714/mo rent on a unit helps defray the mortgage on a $136K property.
What do landlords charge for rent in Red Oak, IA?
Rent in Red Oak, IA is around $714/mo. The resulting rent-to-value relationship with $136K pricing is reasonable for most investor models.
You know 51566 now. You don’t know where it ranks.
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