Iowa · 182nd largest metro area

Buying a home in Cedar Rapids, Iowa

In Cedar Rapids, the median value of owner-occupied homes is $187,100, Linn County's effective property tax rate is 1.66%, a purchase mortgage carried a median $2,117 in total loan costs in 2025, and median gross rent is $967 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Cedar Rapids home costs, fact by fact

About Cedar Rapids

HUD's Fair Market Rent for a two-bedroom in the county is $1,054, and 68.5% of homes are owner-occupied.

Reading the Cedar Rapids figures

Cedar Rapids sits between the two other covered Iowa cities on price, though it is below the state as a whole. Owners estimate the median home at $187,100, against $237,000 statewide. Des Moines is higher at $194,700, and Davenport is lower at $166,400.

Rent is the lowest of the three. Median rent is $967, compared with $978 in Davenport and $1,090 in Des Moines. The Cedar Rapids zone carries a HUD figure of $1,054, above the city's median rent. Owner-occupancy is strong: 68.5% of homes are owned, higher than the 62.9% in Davenport and the 60.5% in Des Moines.

Linn County is where the cost of owning stands out. An effective tax rate of 1.66% on homes at a county median of $214,300 comes to $3,547 a year. Loan costs, by contrast, were light in 2025, at $2,117 at the median over 2,716 loans, with typical quotes from $1,909 to $3,360. A buyer weighing the rent of $967 against a mortgage should therefore put the yearly tax bill next to the lower closing costs rather than looking at price alone.

Calculate for Iowa

If you buy

Iowa state transfer tax

Real estate transfer tax (Iowa Code chapter 428A): $0.80 for each $500, or fraction of $500, above the first $500 (about $1.60 per $1,000).

Price$237,000
State transfer taxnot computed
Who paysThe seller

Default price: the Iowa median value of owner-occupied homes, $237,000 (Census ACS 2025). Not computed: Tax = $0.80 x number of $500 blocks (a fraction counts as a full block) in the price above the first $500. Example: $300,000 gives 599 blocks x $0.80 = $479.20. Personal property stated on the deed is deducted first. Consideration of $500 or less is exempt. Who pays: By statute the person who conveys the property, normally the seller, is liable (428A.3); the contract can allocate it differently. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Iowa transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Iowa state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Cedar Rapids

How much is property tax in Cedar Rapids?

Homeowners in Linn County pay a median $3,547 a year in property tax, 1.66% of the county median home value of $214,300 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Cedar Rapids?

Home-purchase mortgages in Linn County carried median total loan costs of $2,117 in 2025; half of the 2,716 loans fell between $1,909 and $3,360 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Cedar Rapids?

Iowa taxes real estate transfers at $0.80 for each $500 of price above the first $500, or $1.60 per $1,000, which is $479.20 on a $300,000 home. By law the seller, as the person conveying, is liable.

Is it cheaper to rent or buy in Cedar Rapids?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Cedar Rapids ($187,100) equals 16.1 years of the median gross rent ($967 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Iowa rules that apply in Cedar Rapids

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Who licenses each trade in Iowa · All covered cities

Sources

Iowa · All states · Federal guides