Woodbury County

Woodbury County's gross rent-to-price ratio sits at 7.24%, which puts it in the middle tier of Iowa cash-flow markets, generating enough yield to justify underwriting but not enough to carry the property at today's financing costs. At a median home price of $207,499 and median rent of $1,252, the modeled cap rate is 4.71%, which is respectable for a Midwest secondary market but meaningfully below the 6.85% mortgage rate. The consequence shows up directly in the pro forma: with a 20% down payment, monthly mortgage of $1,088, and estimated expenses of $438, the model produces negative $273 monthly cash flow and a cash-on-cash return of -6.86%. That gap is real and should not be papered over. Home price appreciation came in at 2.83% year-over-year, enough to keep equity building but not enough on its own to justify a heavily leveraged buy-and-hold if the carry is this negative. Woodbury scores 78 on appreciation and 72 on cash flow out of 100, which tells you the market leans toward the appreciation side of the spectrum, with cash flow as a secondary characteristic rather than the lead story.

Given those numbers, the investor this market suits best is someone who can reduce the mortgage drag, either through a larger down payment, an assumable loan at a sub-5% rate if one surfaces, or a value-add acquisition below the median where rents can be pushed after renovation. A pure cash-flow buyer running a standard 20%-down conventional loan will be fighting the rate environment the entire hold period. An appreciation buyer with a longer time horizon, five years or more, will find a 2.83% annual price gain on a $207,000 basis more palatable, especially if rents continue to move and the cash-flow gap narrows over time. The affordability index of 86 is worth noting here: Woodbury is more affordable than most markets, which tends to limit downside price risk and support occupancy, even if it also limits explosive appreciation. The market's overall score of 71 out of 100 and 82nd national percentile rank suggest it is a legitimate secondary market, not an afterthought, but also not a market where the numbers fall easily into place without deliberate underwriting.

The carry cost picture deserves its own examination. At a state-average effective property tax rate of 1.53%, Iowa's rate is high enough to deserve its own line on your underwrite. On a $207,499 purchase, that translates to $3,175 annually in property tax and $705 in insurance, combining to $323 per month before you touch mortgage principal, interest, or maintenance. That $323 figure is roughly 30% of the median rent on its own, which compresses net operating income materially. The note embedded in the data is worth repeating: 1.53% is a state-average estimate based on Tax Foundation 2024 figures, and actual county or township rates in Woodbury may differ, so pull the county assessor data before you close. If your actual rate comes in above 1.53%, the cap rate shrinks further from the already-thin 4.71%.

The stability score of 50 is the one number that should prompt a harder look before committing capital. Woodbury County, anchored by Sioux City, is a regional trade and services hub with a population of 105,526, large enough to support real rental demand but exposed to the cyclicality of any economy concentrated around a single metro node. Investors considering a multi-unit strategy here should stress-test occupancy assumptions carefully and avoid pro formas that assume full occupancy to reach breakeven.

Comparing Woodbury to its neighbors clarifies where it fits in the regional landscape. Sioux County and Plymouth County both carry higher median prices ($297,233 and $275,086 respectively) with the same overall score of 71, meaning you are paying significantly more for equivalent modeled performance. Woodbury's $207,499 median looks efficient by that comparison. Wapello County is the aggressive cash-flow alternative in this data set, with a rent-to-price ratio of 7.60% versus Woodbury's 7.24% and a median price of only $131,527, though its overall score of 72 is only marginally better. Marshall County runs a rent-to-price of 6.23% at a $185,274 median, which is a worse yield setup than Woodbury with a lower overall score of 70. Des Moines County at $139,905 median and 7.11% rent-to-price sits between Wapello and Woodbury on yield with a score of 70. The investor who should choose Woodbury over its neighbors is one who wants a larger, more liquid market with better long-term appreciation potential and is willing to accept marginally lower yield compared to Wapello in exchange for Sioux City's broader economic base and greater asset liquidity at exit. If maximizing gross yield on a minimal capital outlay is the sole objective, Wapello County's numbers are harder to argue against.