Taylor County

Taylor County, Iowa sits at a median home price of $143,978, which makes it one of the more affordable entry points in the state. The affordability index scores a near-perfect 99 out of 100, and the county ranks 53rd nationally out of 1,000 counties tracked, placing it in the 93rd percentile overall. Year-over-year home price growth came in at 11.47%, which is a meaningful appreciation number for a rural Iowa county. The cash flow score, however, is listed at zero, and the cap rate and cash-on-cash return fields carry no figures, which tells you the rental income economics either do not pencil cleanly at current prices and rates or sufficient rental comp data was unavailable to model. At a 6.85% interest rate on a $143,978 purchase with 20% down, the debt service alone creates real pressure on any rent-to-price ratio. Investors should not assume this is a cash flow play without running their own local rent comps against actual expenses.

Given those numbers, Taylor County is not a natural fit for a cash flow buyer who needs day-one income to cover carry costs. The zero cash flow score is a flag, not a minor asterisk. Where the county does make a case is on the appreciation side, scoring 76 out of 100, paired with an entry price that is among the lowest you will find in Iowa or nationally. An appreciation-oriented buyer or a patient hold investor who can acquire below the median, stabilize a property with a light value-add, and wait for continued price movement has a real thesis here. The 11.47% year-over-year price gain, if it holds even partially, generates meaningful equity on a $144,000 asset in dollar terms. A value-add operator who can force equity through rehab and refinance may also find the low acquisition cost gives them margin to work with, provided they can establish rental income sufficient to service the debt after renovation.

The county carries a stability score of 50, which is middle-of-road and consistent with what you would expect from a rural Iowa county of under 6,000 people. A population of 5,916 means the rental demand pool is thin. Concentration risk is real here: a small number of tenants, a limited pool of buyers if you need to exit, and sensitivity to any single employer or industry contraction. The data does not include economic anchor or employer information, so no specific industries or companies can be cited, but a county this size in southwestern Iowa will generally be tied to agriculture and regional services, both of which tend to produce modest but relatively stable demand rather than growth.

On carrying costs, the $224 per month in combined property tax and insurance deserves attention on any underwrite. The state-average effective property tax rate is 1.53%, flagged as high, and at that rate the annual tax bill on a $143,978 asset runs approximately $2,203. That is a real number relative to the asset price, and at 6.85% financing the combination of debt service and tax-plus-insurance leaves very little room for rent to produce positive cash flow unless local rents are stronger than the purchase price might suggest. The 1.53% figure is a state-average estimate per Tax Foundation 2024 data, and county or township rates in Taylor County may differ, so pulling the actual assessor data before closing is not optional here. Insurance adds another $490 annually, or $41 per month, which is modest but part of the total $224 monthly carry cost that hits before any maintenance, vacancy, or management expenses.

The neighbor comparison reveals that Taylor County is the lowest-priced option among the counties listed. Audubon County sits at $149,990 with the same overall score of 75. Crawford County comes in at $174,920, also at 75. O'Brien County is $180,344 at 75, Boone County reaches $230,323 at 75, and Benton County is the highest at $261,616 with a score of 74. The fact that every comparison county carries a nearly identical overall score while prices range from $150,000 to $261,000 is the key insight. If the scores are equivalent, Taylor's lower entry price is only an advantage if appreciation continues or if local rents are proportionally strong enough to justify the carry costs at this rate environment. Boone and Benton counties, at higher prices but similar scores, likely reflect stronger population bases and more liquid exit markets. An investor should choose Taylor over its neighbors specifically when capital preservation and lowest-possible entry price are the priority, when they have conviction on continued Iowa rural land and home price appreciation, or when they can source an off-market deal with genuine value-add potential that the higher-priced neighbors cannot offer at equivalent basis.