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Iowa City vs Davenport for Rental Property Investing

Side-by-side comparison of Iowa City, IA and Davenport, IA — cap rates, rent, prices, and investment metrics.

Iowa City wins 4–3 across key metrics
Davenport leads on cash flow (4.37% vs 3.33% cap rate) · Iowa City leads on population growth
Metric
Iowa City, IA
Davenport, IA
Est. Cap Rate
3.33%
4.37%
Median Home Price
$245,000
$165,000
Median Monthly Rent
$1,200
$980
1% Rule
0.49%
0.59%
GRM
17.0x
14.0x
Price / Income
5.0x
3.4x
Property Tax Rate
1.48%
1.52%
Vacancy Rate
4.5%
6.2%
Population Growth
0.6% / yr
0.1% / yr
Annual Appreciation
2.5%
2%
Population
74,000
101,000
Median Income
$48,600
$48,200

Iowa City vs Davenport: Which Is Better for Investors?

Cash flow: Davenport has the edge with an estimated cap rate of 4.37% compared to Iowa City's 3.33%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $245,000 in Iowa City vs $165,000 in Davenport, while rents come in at $1,200/mo and $980/mo respectively.

Growth & appreciation: Iowa City is growing faster at 0.6% annually vs Davenport's 0.1%. Iowa City leads on home value appreciation at 2.5% per year.

Costs & risk: Property taxes are 1.48% in Iowa City vs 1.52% in Davenport. Vacancy rates of 4.5% and 6.2% are mixed — Iowa City has the tighter rental market.

Bottom line: Iowa City edges out Davenport on most key metrics. While cap rates are moderate at 3.33%, Iowa City's overall profile is stronger. Use our free calculators to model specific deals in Iowa City or Davenport.

Iowa City, IA
3.33% cap rate · $245,000 median · $1,200/mo
Full analysis →
Davenport, IA
4.37% cap rate · $165,000 median · $980/mo
Full analysis →
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