Marshall County

Marshall County, Iowa sits at a median home price of $192,339 and a median rent of $1,124, producing a gross rent-to-price ratio of 7.01%. The model's estimated cap rate comes in at 4.56%, which is respectable for a Midwest market of this size but not the kind of number that suggests easy cash flow at today's financing rates. Run the numbers at 6.85% on an 80% LTV loan and the picture gets uncomfortable fast: estimated monthly mortgage of $1,008, expenses of $393, and a cash flow of negative $277 per month, translating to a cash-on-cash return of -7.51%. That means Marshall is not a cash-flow market right now at standard leverage, full stop. Where it earns its keep is on the appreciation side: the overall score of 72 (86th national percentile out of 1,000 counties) is carried in part by an appreciation score of 82, backed by a 3.61% year-over-year home price gain. The affordability index of 89 keeps entry costs low and supports a buyer base that underpins price stability, even if operating income is thin.

The investor profile this market fits is the appreciation buyer or the patient equity builder who can either bring more cash to close, tolerate short-term negative carry while banking price gains, or find a property below the median where the rent-to-price math tightens enough to approach breakeven. At $192,339 median, Marshall is genuinely affordable, which means a buyer who sources off-market or targets distressed properties at, say, $150,000 to $160,000 could reframe the cap rate picture meaningfully. The value-add operator has a plausible case here too: the affordability score of 89 and the low absolute price level suggest room to force equity through renovation without overshooting the rent ceiling. A pure cash-flow buyer chasing day-one positive returns at market pricing and 6.85% debt would be better served elsewhere; the -7.51% cash-on-cash at the modeled assumptions is a wall, not a speed bump.

The $300 per month combined tax and insurance figure deserves serious attention on any underwrite. Iowa's state-average effective property tax rate of 1.53% is high enough that it earns its own line in your model. At that rate applied to a $192,339 purchase, annual property tax runs $2,943, which is $245 per month before a dollar of insurance. Add $54 per month for insurance at the 0.34% rate and you are at $300 monthly just in carry costs before principal, interest, or maintenance. Note that this is a state-average estimate per Tax Foundation 2024 data, and actual Marshall County or township rates may be higher or lower, so pull the county assessor's data before finalizing your numbers. If you buy below median and your assessed value lags purchase price, this figure can compress. But going in assuming $300 monthly in tax and insurance is the right conservative posture.

The primary risk in Marshall is concentration and scale. At 40,049 people, this is a small market. A single large employer reducing headcount, or a demographic drift toward younger workers leaving for larger metros, could soften rental demand without much buffer. The stability score of 50 out of 100 is the weakest number on the scorecard and is the signal worth taking seriously. It does not indicate imminent distress, but it does mean Marshall lacks the economic depth of a larger metro market, and investors should stress-test for vacancy and underwrite accordingly rather than assuming easy tenant turnover.

Comparing Marshall to its neighbors clarifies where it sits in the regional landscape. Wapello County ($131,527 median, 7.60% rent-to-price) and Webster County ($134,911 median, 7.34% rent-to-price) both offer more favorable gross yield math at lower absolute entry prices, though both carry the same overall score of 72. If cash flow is the priority and you are comfortable with smaller markets, either of those two is worth modeling side by side. Black Hawk County ($184,044 median, 7.30% rent-to-price, overall score 73) is the closest comparable and slightly edges Marshall on rent-to-price while coming in cheaper, suggesting it may offer marginally better cash-flow potential in a similarly sized Iowa market. Woodbury County ($197,193 median, 7.08% rent-to-price) is priced just above Marshall with a slightly lower overall score of 71, making it a harder argument unless you have specific market knowledge there. Choose Marshall over these neighbors when you believe its 3.61% appreciation trajectory and 86th-percentile national ranking reflect real underlying demand that the rent-to-price ratio alone does not capture, or when you have a specific asset identified below median that pencils out at the property level.