Tama County

Tama County sits at a median home price of $175,936 and a median rent of $875, producing a rent-to-price ratio of 5.97%. That ratio places it comfortably in appreciation-leaning territory rather than pure cash-flow country, and the numbers confirm it: the model underwrite spits out a cap rate of 3.88% and a cash-on-cash return of negative 10.47% at a 6.85% rate on an 80% LTV purchase. Monthly mortgage of $922 against $875 in rent means the property is underwater before you add a single dollar of expenses. Year-over-year home price growth of 5.36% is doing real work here, and the appreciation score of 87 out of 100 reflects that. The affordability index of 92 and an overall national percentile rank of 82nd out of 1,000 counties tell you this market is being noticed, but the cash-flow score of 60 and stability score of 50 keep expectations honest.

The investor this market suits is not someone running a spreadsheet that needs to pencil on day one. At negative $353 per month estimated cash flow, Tama is a negative-carry appreciation play at current financing rates. If you're a cash-flow buyer who needs the property to service itself, you're in the wrong county. Where Tama makes sense is for an investor with dry powder who can absorb the carry, believes the 5.36% annual price appreciation continues, and is playing a medium-term equity accumulation strategy. A value-add operator who can push rents materially above the $875 median, or who can acquire meaningfully below the $175,936 median, changes the math: every $50 of additional monthly rent against a fixed mortgage shifts the cash-on-cash by roughly 1.7 percentage points. The affordability score of 92 suggests there is still a price ceiling before buyers get priced out, but that same ceiling limits how aggressively rents can be raised.

No economic anchor or employer data was provided for Tama County, so no claims about the local job base are made here. What the population figure of 17,017 does tell you is that this is a small rural county. Thin population means thin rental demand, thin tenant pools, and longer re-leasing timelines when a unit turns. The stability score of 50 is worth taking seriously in that context.

At a state-average effective property tax rate of 1.53%, Iowa's tax burden deserves its own line on your underwrite. That rate is high enough that the $2,692 in estimated annual property tax, combined with $598 in annual insurance, produces $274 per month in combined tax and insurance carry before you touch mortgage principal, interest, or maintenance. To be clear, the 1.53% figure is a state-average estimate from Tax Foundation 2024 data, and actual Tama County or township-level rates may differ, but the direction of risk is upward, not downward. When your gross rent is $875 and your tax-plus-insurance alone is $274, you've already consumed 31% of revenue on two line items. That is not a reason to walk, but it is a reason to verify the actual assessed rate and millage before closing.

The primary risks here are size and concentration. A county of 17,017 people has a limited number of active rental tenants. One large employer reducing headcount, or one demographic shift in out-migration, shows up fast in vacancy. The data does not provide vacancy rates, so no specific vacancy figure is cited, but the structural exposure of a small rural county to demand shocks is a real consideration that the stability score of 50 quantifies.

Against its neighbors, Tama is mid-pack on price and below mid-pack on rent yield. Woodbury County offers a rent-to-price ratio of 7.08% against a median price of $197,193 and an overall score of 71, making it a meaningfully better cash-flow setup at only a modest price premium. Wapello County is the most aggressive cash-flow option in this peer group, with a ratio of 7.60% and a median price of just $131,527, though its overall score of 72 is only marginally better than Tama's 71. Marshall County lands at 6.23% rent-to-price and $185,274, offering slightly better yield than Tama with comparable overall scores. You choose Tama over these neighbors specifically when you are betting on price appreciation, not yield. Its 5.36% year-over-year price growth and appreciation score of 87 are the numbers that differentiate it. If cash flow or yield is the primary objective, Woodbury or Wapello gives you better mechanics at a comparable or lower entry price.