Franklin County

Franklin County, Iowa lands at the 98th percentile nationally out of 1,000 counties scored, ranking 3rd in Iowa and 13th in the country overall. At a median home price of $160,373 and a 5.42% year-over-year price gain, the county scores 87 on appreciation and 96 on affordability, which is a rare combination. The cash flow score, however, comes in at zero, and the cap rate and cash-on-cash fields in the data confirm there is no modeled positive cash flow at the current $160,373 purchase price with a 6.85% rate. The $250 monthly tax and insurance load, discussed further below, is a meaningful drag. This is not a market where you buy a stabilized rental and clip coupons from day one. It is a market where you are buying price momentum at a low absolute entry point and accepting thin or negative current-period cash flow in exchange for what the data describes as above-average appreciation trajectory.

That profile suits an appreciation-oriented buyer more than a cash-flow buyer, and it may also attract value-add operators who can manufacture yield through renovation or conversion that lifts rents above the level the current market supports at a $160,373 basis. A pure cash-flow buyer chasing day-one returns should look elsewhere, because the scored cash flow is literally zero. An appreciation buyer, though, is getting into Iowa's third-ranked county at $160,373, a price point that leaves meaningful room for equity accumulation if the 5.42% annual price trend continues even at a fraction of that pace. The affordability index of 96 suggests the market is priced just below what local incomes can comfortably support, which typically underpins demand without the bubble risk that comes from affordability scores near or above 100 on an overstretched basis. A long-hold investor with patience and a willingness to manage negative or break-even monthly cash flow during the carry period is the natural buyer here.

No economic anchor or employer data was provided for Franklin County, so this analysis cannot speak to the specific drivers of rental demand or job-base stability. What the population figure of 10,015 does communicate is that this is a small, rural Iowa county, and small-county dynamics carry real implications: the renter pool is narrow, vacancy can spike sharply if a single employer softens, and liquidity on exit is limited compared to metro-adjacent markets. Investors accustomed to urban or suburban markets should reset their expectations for how quickly a vacant unit re-leases and how broad the buyer pool will be at resale.

On carry costs, property taxes deserve a dedicated line on your underwrite. The state-average effective rate of 1.53% is flagged as high, and at the $160,373 purchase price that translates to $2,454 in annual taxes, or $205 per month, before insurance. Adding the $340 annual insurance estimate brings the combined monthly tax-and-insurance figure to $250. That is a real number in a county where gross rents on a $160,000 house are unlikely to be dramatically high, and it compresses the margin between gross rent and net operating income in a way that helps explain the zero cash flow score. Per the data note, the 1.53% figure is a state-average estimate from the Tax Foundation and actual Franklin County or township rates may differ, so pull the county assessor's current levy before finalizing any underwrite.

The neighbor comparison sharpens the picture. Franklin's $160,373 median sits above Hardin County at $139,169 and Humboldt County at $153,359, but below Louisa at $169,860, Fremont at $166,833, and Harrison at $212,859. All five neighbors carry overall scores of 77 or 78, versus Franklin's 79, so the scoring differential is narrow. The case for choosing Franklin over its neighbors comes down to the 87 appreciation score, which is the specific data point that distinguishes it within this peer group. If appreciation is your primary return driver and you want Iowa exposure at a sub-$165,000 entry, Franklin's ranking (3rd in the state, 13th nationally) suggests the data model sees something in its price trajectory that the neighboring counties do not match at the same score level. Hardin at $139,169 is cheaper and carries a 77 overall, which could suit a budget-constrained buyer who is willing to trade some appreciation expectation for a lower basis. Harrison at $212,859 is the priciest neighbor and still scores only 78, making Franklin the better value on a score-per-dollar-invested basis within this peer set.