Data through September 2026 · updated 2026-11-07 · free, from Zillow, Realtor.com, the Census Bureau and other public sources
Typical home value$300,040+3.0% YoY · prices are rising
Market right nowBalanced, leaning sellersFewer homes for sale than last year, 13% have cut their price
Income needed to buy, per year$65,042About 0.8× the local median income ($77,223): affordable for a typical household
Days on market60 daysAbout the same pace as a year ago
Next 12 months+3.3%Zillow expects prices to rise slightly
The typical home in Iowa City, IA is worth $300,040, up 3.0% from a year ago. That is slightly above what local incomes have historically supported: fair value is about $283,621, so the area is 5.8% overvalued. It is a balanced market, leaning toward sellers: homes take about 60 days to sell, listings are down 26% from a year ago, 13% of listings have had a price cut. Zillow expects prices to rise about 3.3% over the next year. A household needs about $65,042 a year to afford the typical home here at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $77,223. Typical rent is $1,757 a month, or $2,264 for a house. In the latest IRS figures, 1,059 more people moved out than in.
Home value over time
Solid: typical home value · dashed: fair value (household income × the 20-year average price-to-income ratio). Sources: FHFA, Zillow, U.S. Census Bureau.
Prices and affordability
Typical home value
$300,040
Change in 1 year
+3.0%
Overvalued %
+5.8%
Show 7 more
Fair home value
$283,621
Change in 5 years
+24.3%
Zillow forecast, next 12 months
+3.3%
Home value to income
3.9×
Monthly mortgage payment (20% down)
$1,626
Income needed to afford it
$65,042
Property tax rate
1.50%
Rent and investing
Typical rent
$1,757
Typical rent for houses
$2,264
Price-to-rent ratio
14.2×
Show 3 more
HUD Fair Market Rent, 2 bedrooms
$1,158
Gross rental yield
7.03%
Cap rate (estimate)
4.57%
Market activity
Listings vs a year ago
−26.5%
Days on market
60
Listings with a price cut
12.8%
Show 3 more
Homes for sale
625
Pending sales per 100 listings
36
Asking price per sq ft
$192
People and jobs
Median household income
$77,223
Population change (1 year)
+0.7%
Unemployment rate
3.6%
Show 4 more
Population
182,711
Income adjusted for cost of living
$84,397
Net moves in (IRS)
−1,059
Cost of living (US = 100)
91.5
Schools, risk and environment
School rating (1 to 10)
5.7
FEMA hazard risk score (0 to 100)
82.0
Unhealthy air days a year
4
Show 4 more
Flood risk score
75.9
Wildfire risk score
63.2
Walkability (1 to 20)
9.0
Road, rail and air noise
54 dB
Questions people ask
Is Iowa City, IA overvalued?
Home prices in Iowa City, IA are slightly above what local incomes have historically supported: fair value is about $283,621, so the area is 5.8% overvalued.
Is Iowa City, IA a buyer's or seller's market?
Iowa City, IA is a balanced market, leaning toward sellers: homes take about 60 days to sell, listings are down 26% from a year ago, 13% of listings have had a price cut.
Are home prices going down in Iowa City, IA?
Home values in Iowa City, IA are up 3.0% over the last year. Zillow's forecast for the next 12 months is +3.3%.
How much do you need to earn to buy a home in Iowa City, IA?
A household needs about $65,042 a year to afford the typical home in Iowa City, IA at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $77,223.