Davenport and Cedar Rapids: Yield With Volume
Program and regulatory figures verified October 7, 2026. Details change; confirm your scenario with us.
If the top of the Iowa table is too thin and the bottom is too expensive, this is the band in between, and it is where most of our Iowa files actually sit.
The six-percent band
| Market | Typical value | Typical rent | Gross yield |
|---|---|---|---|
| Davenport | $196,628 | $1,009 | 6.16% |
| Cedar Rapids | $245,444 | $1,250 | 6.11% |
| Waterloo | $199,692 | $1,010 | 6.07% |
| Marshalltown | $196,594 | $987 | 6.03% |
| Des Moines, for comparison | $294,192 | $1,297 | 5.29% |
Four markets within 0.13 of a point of each other, all ahead of the capital. Davenport and Cedar Rapids are the two with genuine metro scale behind them.
★ Why this is where files land
Because it resolves the tension the rest of the table creates.
Burlington's 8.25% is the best arithmetic in Iowa and the thinnest market. Des Moines' 5.29% is the deepest market and the weakest arithmetic. Davenport and Cedar Rapids give you roughly 0.85 of a point over Des Moines while remaining markets with real tenant demand, real buyer pools and real appraisal comparables.
For an out-of-state investor buying a second or third Iowa door, that is usually the right place on the curve. The whole curve.
The two are not the same market
Davenport is the Iowa side of the Quad Cities, so the metro spans a state line. Its typical value of $196,628 is the lower of the pair and its rent of $1,009 is modest, which is what produces the slightly better ratio.
★ One practical note for a cross-state metro: Iowa's foreclosure, redemption and property tax rules stop at the Iowa line. A property on the Illinois side of the Quad Cities is a different legal product entirely. Illinois is judicial with a post-sale redemption position Iowa does not have. If you are comparing listings across the river, you are comparing two different exits, and we will not advise on the Illinois side from this page.
Cedar Rapids is wholly Iowa, larger, with a stronger rent at $1,250 on a higher value of $245,444. It behaves more like a scaled-down Des Moines.
★ The caveats
The yield is gross, taxes, insurance, vacancy, management and maintenance are outside it. In Iowa, a rental gets no homestead credit, and on a 3-plus unit parcel the classification is the assessor's. The tax line.
And these four markets are within 0.13 of a point of each other, which is inside the noise of a single monthly reading. Do not treat the ordering as meaningful; treat the band as the signal.
The exit
Identical statewide. Non-owner-occupied means two months post-judgment under §654.21 and no post-sale redemption under §654.23. Detail.
Run a property
Address, rent, assessor's figure, and tell us which side of the river, if it is the Quad Cities.
Mike Certo, NMLS #260555. (480) 296-6513.
Frequently asked questions
What is the rental yield in Davenport and Cedar Rapids?
Davenport had a gross yield of 6.16% on a typical home value of $196,628 against typical asking rent of $1,009, and Cedar Rapids 6.11% on $245,444 against $1,250, both for the month ending 31 August 2026. Both beat Des Moines at 5.29% while retaining substantially more market depth than Iowa's small river towns.Does Iowa law apply to the Illinois side of the Quad Cities?
No. Iowa's foreclosure, redemption and property tax rules stop at the state line. Illinois forecloses judicially with a redemption position Iowa does not have, so a property across the river is a different legal product with a different exit. If you are comparing listings across the Quad Cities, confirm which state the parcel sits in before comparing the numbers.Which Iowa market is the best balance of yield and liquidity?
Davenport and Cedar Rapids are the two with both. They returned 6.16% and 6.11% gross yield for the month ending 31 August 2026, roughly 0.85 of a point ahead of Des Moines at 5.29%, while remaining metros with real tenant demand, buyer pools and appraisal comparables, unlike the small river markets at the top of the table.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about investment-property financing, not a loan commitment and not legal or tax advice. Iowa foreclosure procedure, redemption and deficiency rules are set by the Iowa Code and change; figures here carry the date we verified them against the code itself. Gross yield figures are a market indicator built from published typical values and typical asking rents, not a property-level underwrite: they exclude taxes, insurance, vacancy and management. Property classification and assessment are determined by the county assessor. All loans are subject to borrower, property and program qualification.