Iowa City, IA

Rent vs buy in Iowa City

Median home $280,400. A 1 bedrooms rents for $899 a month. Ownership is modelled at 20% down, 6.5% APR, property tax and upkeep.

Rent · 1 bedrooms: $899; per month
Own the median home: $2,035; P&I, tax, insurance, upkeep
Owning costs extra: $1,136; per month, same metro

What a purchase actually costs

20% down payment$56,080
Mortgage at 6.5%$1,418
Property tax (1.54% of value)$360/mo · $4,318/yr
Insurance and upkeep (1.1%/yr)$257
Total monthly ownership$2,035

Months of leftover to save the down payment

At $2,551 left over a month, it takes about 22 months (1.8 years) to save $56,080 if every leftover dollar goes to the down payment — which it won't.

Rent is asking rent for a new lease. Home value is the Census ACS median. The mortgage is a 30-year fixed at 6.5% with 20% down — a yardstick, not a quote. Not housing or lending advice.