Rent vs buy in Cedar Rapids, IA
In Cedar Rapids, Iowa, the typical rent is $1,274 /mo and the typical home is $215,727.
Over 7 years, renting comes out $19k ahead
Today's mortgage rate is paired with 20% down and Cedar Rapids's typical home value and rent. The break-even point arrives in year 15.
Clearly labeled opinion with the math shown. These are estimates, not quotes. The stamp changes when you change a number.
- Renting leads by
- $19k after 7 years
- Break-even point
- year 15 when owning catches up
- Owning's true cost
- $2,066 /mo year 1, against $1,274 rent
Change my numbers
The stamp relies on Cedar Rapids's typical home value and rent. Your rent, price and years can change the result.
Do your numbers differ from the city's?
Enter your own rent, price and down payment. Your entries change the stamp.
Is it cheaper to rent or buy in Cedar Rapids?
Over 7 years, renting saves $19,153 after counting the money you receive when you sell. For the first 14 years, renting costs less. By year 15, owning catches up.
Renting. Owning. Net cost by year so far.
Cedar Rapids average rent compared with mortgage payment
Rent and mortgage payments don't tell the whole story. At Cedar Rapids's typical price, these are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,274 | All of it, every month |
| Mortgage payment | $1,176 | $1,037 of it is interest in year 1 |
| Property tax | $311 | 1.73% of the value a year |
| Insurance | $98 | Census median for the city |
| Upkeep | $180 | 1% of the value a year |
| Owning, cash out | $1,765 | $139 of it builds equity |
| Lost return on the down payment | $351 | Annual return the cash would earn at 8.3% |
| Buying costs, spread out | $90 | 3.5% of the price over 7 years |
| True cost of owning | $2,066 | Subtract the equity part from cash out, then add both entries above. |
Numbers behind the Cedar Rapids verdict
- Typical home valueZillow ZHVI, September 2026
- $215,727
- Typical rentZillow ZORI, September 2026
- $1,274 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Iowa, 1995 to 2025
- 3.7% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Cedar Rapids
- 1.73% of value
- Home insuranceCensus ACS 2020-2024, Cedar Rapids
- $98 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What conditions would flip the result in Cedar Rapids?
Each line marks where Cedar Rapids's 7-year verdict changes, while every other setting stays the same.
Renting wins if
- Annual home price growth stays below 4.8%. For the calculation, we use 3.7%, based on Iowa's long-term rate.
- The mortgage rate remains above 5.66%.
- Monthly rent for a home like this costs less than $1,480 (the typical rate here is $1,274).
- Your move takes place before year 15.
Buying comes out ahead when
- Home prices rise by more than 4.8% a year.
- You lock in a mortgage rate under 5.66% (today's is 7.24%).
- If you rented that same home, the monthly cost would exceed $1,480.
- You remain for 15 years or longer.
Cedar Rapids compared with the other 812 cities
| Measure | Cedar Rapids | Median city |
|---|---|---|
| Typical home value | $215,727 | $422,451 |
| Typical rent | $1,274 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.1 (#677 of 813) | 18.5 |
| Home prices, last 10 years | 4.7% a year | 6.2% a year |
| Rents, last 5 years | 7.3% a year | 4% a year |
| Property tax | 1.73% | 0.87% |
| Households that rent | 31% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Additional cities in Iowa
- In Des Moines, IA, renting saves $29k.
- In Davenport, IA, renting saves $34k.
- In Sioux City, IA, renting saves $8k.
- In Ankeny, IA, renting saves $74k.
- In Iowa City, IA, renting saves $29k.
- In West Des Moines, IA, renting saves $71k.
- In Ames, IA, renting saves $67k.
- In Waterloo, IA, renting saves $9k.
- In Council Bluffs, IA, renting saves $23k.
- In Dubuque, IA, renting saves $49k.