Real Estate Investing in Ottumwa, Iowa (52501)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 52501 (Ottumwa, 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: 10.1% vacancy may signal weakening demand.
What’s happening in Ottumwa, IA (52501)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 52501 Ottumwa
The 52501 ZIP covers a section of Ottumwa that demands careful diligence. Prices near $126K look accessible, but the work to make a deal cash flow is real.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $126K asset, 52501 is the wrong submarket. If the plan prices in friction, the yield can still work.
Within IA, ZIP 52501 trails on several market indicators that neighboring Wapello County submarkets outperform. The gap is real and robust enough to shape underwriting.
The demographic picture in 52501 includes headwinds that any investor should price in. Income distribution skews lower than Ottumwa averages, and tenant stability requires active management.
tilts toward 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 Ottumwa:
Property Strategy for 52501
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $55,645 | $820 | 10.6% | +4.3% | $55,645 |
| 2BR | $90,900 | $1,070 | 8.5% | +7.4% | $45,450 |
| 3BR | $149,502 | $1,360 | 6.5% | +7.9% | $49,834 |
| 4BR | $188,448 | $1,470 | 5.6% | +8.0% | $47,112 |
| 5BR | $247,297 | — | — | +7.7% | $49,459 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 52501 Compare?
| Metric | 52501 | Ottumwa | Ottumwa, IA | Iowa |
|---|---|---|---|---|
| Home Value | $126,439 | $182,621 | N/A | $227,232 |
| 5-Year CAGR | 5.3% | 6.8% | N/A | 6.0% |
| Avg Rent | $833 | $831 | N/A | - |
| Cap Rate | 5.1% | 3.9% | - | - |
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 52501 (Ottumwa, IA). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 52501 (Ottumwa, IA)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $126,439 |
| Monthly Rent | $833 |
| Price-to-Rent | 12.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.9% |
| Cap Rate | 5.1% |
| 5-Year IRR | 10.5% |
📈 Home Appreciation
| 1-Year | +3.5% ▲ |
| 3-Year CAGR | +3.3% ▲ |
| 5-Year CAGR | +5.3% ▲ |
| 10-Year CAGR | +3.6% ▲ |
🏠 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 (5.1%). 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 52501
Population: 30,341
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 52501
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.
🎓 Nearby Colleges & Universities
Investor Insight: With 1,006 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the typical home price in Ottumwa, IA?
In Ottumwa, IA the median home value sits at $126K. Against the broader IA market, that reads as reasonable for most investors.
Is Ottumwa, IA a friendly market for rental owners?
Ottumwa, IA falls under IA landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
What is the renter demographic in Ottumwa, IA?
Tenant quality in Ottumwa, IA ranks as solid. Landlords generally report stable occupancy at market rents of $833/mo.
Does house hacking make sense in Ottumwa, IA?
House hacking in Ottumwa, IA is reasonable to execute. Prices around $126K and rents of $833/mo solid owner-occupant economics.
What approach is best for Ottumwa, IA real estate?
The best-fit strategy in Ottumwa, IA is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
You know 52501 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 52501 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
AI Market Advisor
Ask questions about investing in 52501 (Ottumwa)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 52501 (Ottumwa, IA).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.