Markets/Iowa/Iowa City

Iowa City, IA Real Estate Market 2026

Investor-grade market analytics for Iowa City, Iowa. Data from Zillow ZHVI, FRED, Census ACS, and FEMA NRI. Data through July 2026.

Median Home Price

$304,707

+3.6% year-over-year

Est. Rental Yield

5.4%

gross annual

12-Month Forecast

+3.5%

base case (Zillow ZHVF)

+3.5% year-over-year

Climate Risk

38/100

Low

Market Momentum

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Warm
2.2mo supply ยท Score +3/7

Net migration: Bottom 7% nationally

Income Migration

๐Ÿ“‰ Wealth Drain0.84x

In-migrants avg $54,761 AGI vs out-migrants $64,986

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Opportunity Zone Market

3 ZIP codes in Iowa City are designated Qualified Opportunity Zones (IRC 1400Z-2), eligible for capital gains tax deferral on qualifying investments. Learn more โ†’

Iowa City Market Summary

Iowa City, IA shows steady growth at 3.6% year-over-year appreciation, reflecting balanced market conditions with moderate demand. Affordability remains favorable with a price-to-income ratio of 4.11x, below the national average of 4.8x. Climate risk remains low (38/100), favorable for long-term investment stability. Rental yield of 5.38% is moderate, offering acceptable cash flow for leveraged investments.

Affordability

Affordability Score84/100
Price-to-Income Ratio4.1x (national avg 4.8x)
Median Household Income$74,142

Price Forecast Scenarios

12-month projection (Zillow ZHVF model)

Bear Case+1.8%
Base Case+3.5%
Bull Case+5.3%

Climate & Natural Hazard Risk

Iowa City, IA's primary climate exposure is wind storms (80/100). The composite climate risk score of 38/100 (Low) indicates overall risk reflecting favorable conditions for long-term real estate investment. This market benefits from relatively low natural hazard exposure compared to coastal and wildfire-prone regions.

Source: FEMA National Risk Index

Get the full Iowa City dataset

Migration flows, ZIP-level neighborhood data, full demographics, price history, and the Market Screener.