Real Estate Investing in Iowa City, Iowa (52240)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 52240 (Iowa City, IA)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 9.2% vacancy may signal weakening demand.
What’s happening in Iowa City, IA (52240)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 52240 Iowa City
ZIP 52240 inside Johnson County looks affordable on the surface — median value of $282K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed markets are won on execution, not on spreadsheets. ZIP 52240 sits at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
ZIP 52240's metrics run below Johnson County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Resident income in 52240 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategically, 52240 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 Iowa City:
Property Strategy for 52240
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $197,648 | $1,020 | 3.7% | +2.9% | $197,648 |
| 2BR | $195,987 | $1,210 | 4.4% | +6.3% | $97,994 |
| 3BR | $269,942 | $1,680 | 4.5% | +5.4% | $89,981 |
| 4BR | $351,754 | $2,030 | 4.2% | +6.1% | $87,938 |
| 5BR | $496,896 | — | — | +5.3% | $99,379 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 52240 Compare?
| Metric | 52240 | Iowa City | Iowa City, IA | Iowa |
|---|---|---|---|---|
| Home Value | $281,933 | $184,003 | N/A | $227,232 |
| 5-Year CAGR | 4.4% | 5.2% | N/A | 6.0% |
| Avg Rent | $1,230 | $1,305 | N/A | - |
| Cap Rate | 3.4% | 3.3% | - | - |
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 52240 (Iowa City, IA). Anonymous, moderated, never written by AI.
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Property managers serving Johnson County
Manage rentals here? List your business →KMB Property Management offers management services, including HOA management, and provides resources for residents and clients. summary from their website
Keystone Property Management Group offers property management services. summary from their website
Nest Property Management offers full-service property management to owners and investors in Iowa City, including student housing and tenant resources. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $281,933 |
| Monthly Rent | $1,230 |
| Price-to-Rent | 19.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 7.8% |
📈 Home Appreciation
| 1-Year | +4.4% ▲ |
| 3-Year CAGR | +3.1% ▲ |
| 5-Year CAGR | +4.4% ▲ |
| 10-Year CAGR | +4.4% ▲ |
🏠 Rent Trends
| 1-Year | -23.8% ▼ |
| 3-Year CAGR | -6.0% ▼ |
| 5-Year CAGR | -1.3% ▼ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.4%). 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 52240
Population: 36,046
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 52240
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Robert Lucas Elementary School
Helen Lemme Elementary School
Bohumil Shimek Elementary School
Horace Mann Elementary School
Iowa City High School
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.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
What strategy should investors use in Iowa City, IA?
A careful cash-flow rentals with hands-on management strategy Iowa City, IA best. The market produces even-keeled results for that approach at the $282K price point.
What is the typical renter like in Iowa City, IA?
Tenant quality in Iowa City, IA ranks as solid. Landlords generally report stable occupancy at market rents of $1,230/mo.
Is Iowa City, IA good for landlords?
Iowa City, IA falls under IA landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Can owner-occupants cash flow in Iowa City, IA?
Iowa City, IA offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,230/mo rent level.
How much do tenants pay in Iowa City, IA?
Rent in Iowa City, IA is around $1,230/mo. The resulting rent-to-value relationship with $282K pricing is reasonable for most investor models.
You know 52240 now. You don’t know where it ranks.
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How 52240 ranks in Iowa City, IA
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