2506 S 8th Ave E · Newton, IA 50208

$90,000

2 bd · 1.0 ba · 724 sqft · SingleFamily public records · 41 Days on market

Built 1955 9,108 sqft lot $124/sqft · 28% below area Est $126k · 28% under

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +19.2/30.0
• ARV discount +15.0/15.0
• DSCR +6.1/10.0
• Schools +5.1/10.0
• 1% rule +4.3/10.0
• Livability +3.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

If you're looking for an investment opportunity, this property delivers solid value in a desirable location. The home features a newer furnace and air. it also has hardwood floors that are in good condition. The roof was replaced in 2020. Appliances stay. The property also includes a large 2 stall detached garage. The seller is selling the property in as is condition. The property has easy access to I-80, commuting is simple, while still enjoying the charm of small-town living. A great opportunity to make a home your own in a peaceful Newton neighborhood.

Key facts

• 9,108 sq ft lot
• 2 garage spots
• Built 1955

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $90k.

Deal economics

• At list price, monthly cash flow is $97 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $84k (7.0% below list).
• Recommended offer: $84k (7.0% below list) — sets the bar for 1% rule.
• Cap rate 7.6% vs local median 3.1% in Newton — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 77/100 on livability (#169 in IA, #3,069 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, employment D+, amenities F.
• Newton Community School District (town): math 59% / reading 62% proficiency, ranked #245 of 289 in IA (top 85%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 242 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 16 units permitted in Jasper County in 2024 (0 in 5+ unit buildings).
• This rent is only 16% of the median local income ($62k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $622 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Jasper County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 41 days — a 3% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 12y ago; this cycle's ask has dropped $8k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $33k; list at $90k implies a 176% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $83,670 (7.0% below list)

Questions for the listing agent

1. It's been on market 41 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
2. Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
5. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
6. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
7. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.93% ✗
• Cap rate: 7.59%
• Cash-on-cash: 4.62%
• DSCR: 1.21
• GRM: 9.0

CMA / ARV

• ARV (median comp): $125,666
• List price: $90,000
• Delta: -28.38%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
2506 S 8th Ave E	0.00mi	2/1.0	724 (0%)	0mo	$76,000	$105	100
709 E 27th St S	0.01mi	2/1.0	768 (+6%)	5mo	$60,000	$78	85
408 E 21st St S	0.35mi	2/1.0	732 (+1%)	0mo	$156,000	$213	82
600 E 26th St S	0.11mi	2/1.0	672 (-7%)	2mo	$105,000	$156	81
600 E 23rd St S	0.20mi	2/1.0	720 (-1%)	10mo	$130,000	$181	81
604 E 26th St S	0.09mi	2/1.0	672 (-7%)	6mo	$115,000	$171	79
2505 S 8th Ave E	0.03mi	3/2.0 (+1)	700 (-3%)	7mo	$125,000	$179	78
601 E 22nd St S	0.28mi	2/1.0	768 (+6%)	2mo	$145,000	$189	75
2105 S 5th Ave E	0.31mi	2/1.0	664 (-8%)	4mo	$147,000	$221	68
512 E 19th St S	0.43mi	2/1.0	786 (+9%)	1mo	$153,000	$195	65
2011 S 3rd Ave E	0.44mi	2/1.0	758 (+5%)	10mo	$150,000	$198	63
308 E 25th Street Pl S	0.25mi	3/1.0 (+1)	816 (+13%)	8mo	$132,500	$162	56

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -9.1%
• Equity multiple: 0.67×
• Total profit: $-8,427
• Equity at exit: $13,419

10-year hold

• IRR: 0.3%
• Equity multiple: 1.02×
• Total profit: $525
• Equity at exit: $7,782

Cash invested: $25,200 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50208

• Home prices YoY: -14.4%
• Active inventory: 242
• Price-to-rent: 9.0×

Monthly cashflow live

• Estimated rent: $837 high
• Mortgage (P&I): −$472
• Tax from tax record: −$54 /mo · $654/yr
• Insurance: −$38
• HOA: −$0
• Vacancy / Maint / Mgmt: −$176
• Net cashflow: $97

Break-even live

Break-even rent $714

Max offer price $90,000

Occupancy floor 83%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $22,500
• Closing costs: $2,700
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
723 E 6th St S Newton, IA	2.0	1.0	650	$775	$1.19	43d	1	1.33mi
1026 E 12th St N Newton, IA	1.0	1.0	590	$625	$1.06	21d	1	1.40mi
605 E 7 1/2 St N Newton, IA	2.0	1.0	672	$1,200	$1.79	43d	1	1.45mi
126 E 5th St S Newton, IA	1.0	1.0	550	$599	$1.09	23d	1	1.45mi
726 E 8th St N Newton, IA	1.0	1.0	708	$895	$1.26	14d	1	1.46mi

Listing history 10 events

1. 2026-05-12
   status Pending 561-char remark

   Show marketing remark (561 chars)

   If you're looking for an investment opportunity, this property delivers solid value in a desirable location. The home features a newer furnace and air. it also has hardwood floors that are in good condition. The roof was replaced in 2020. Appliances stay. The property also includes a large 2 stall detached garage. The seller is selling the property in as is condition. The property has easy access to I-80, commuting is simple, while still enjoying the charm of small-town living. A great opportunity to make a home your own in a peaceful Newton neighborhood.

2. 2026-04-24
   price $90,000 561-char remark

   Show marketing remark (561 chars)

   If you're looking for an investment opportunity, this property delivers solid value in a desirable location. The home features a newer furnace and air. it also has hardwood floors that are in good condition. The roof was replaced in 2020. Appliances stay. The property also includes a large 2 stall detached garage. The seller is selling the property in as is condition. The property has easy access to I-80, commuting is simple, while still enjoying the charm of small-town living. A great opportunity to make a home your own in a peaceful Newton neighborhood.

3. 2026-04-01
   listed $98,000 Active 561-char remark

   Show marketing remark (561 chars)

   If you're looking for an investment opportunity, this property delivers solid value in a desirable location. The home features a newer furnace and air. it also has hardwood floors that are in good condition. The roof was replaced in 2020. Appliances stay. The property also includes a large 2 stall detached garage. The seller is selling the property in as is condition. The property has easy access to I-80, commuting is simple, while still enjoying the charm of small-town living. A great opportunity to make a home your own in a peaceful Newton neighborhood.

4. 2015-03-11
   soldstatus $32,653
5. 2015-03-10
   soldstatus $32,000 63-char remark

   Show marketing remark (63 chars)

   Furnace & A/C replaced in 2006. Roof replaced approx 2004

6. 2015-03-10
   soldstatus $32,000

   Show marketing remark (63 chars)

   Furnace & A/C replaced in 2006. Roof replaced approx 2004

7. 2015-03-10
   soldstatus $32,000

   Show marketing remark (63 chars)

   Furnace & A/C replaced in 2006. Roof replaced approx 2004

8. 2014-11-18
   listed $35,500 63-char remark

   Show marketing remark (63 chars)

   Furnace & A/C replaced in 2006. Roof replaced approx 2004

9. 2014-11-15
   listed $35,500
10. 2014-11-15
    listed $35,500

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $654 · $54/mo
• Projected year-2 tax: $1,034 · $86/mo
• Expected delta: +$380/yr (+$32/mo · 58.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥104°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,040
• − Mortgage interest: −$5,041
• − Property taxes: −$654
• − Insurance: −$450
• − Repairs & maintenance: −$803
• − Management: −$803
• − Depreciation: −$2,618
• Taxable loss: −$330
• Est. tax savings @ 24.0%: +$79
• After-tax cash flow: $1,243/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Newton Community School District
• NCES district ID: 1920610
• Math proficiency: 59% ▼ -13.00%
• Reading proficiency: 62% ▼ -9.00%
• Median HH income: $46,447
• Composite: 51.15/100
• National rank: #1762
• State rank: #245 of 289 in IA

Livability — Newton

• Score: 77/100
• State rank: #169
• US rank: #3069

Category grades

Amenities F Commute F Cost of living A+ Crime C- Employment D+ Housing A+ Health & safety A+ User ratings B+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Newton, IA
• County: Jasper County · 20,595 people
• City population: 20,595
• Metro: Des Moines-West Des Moines, IA
• Population (ZIP): 20,595
• Household income: $62,306
• Rent vs Own: 34.5% rent · 65.5% own
• Severe rent burden: 536.0

Population outlook (Jasper County) Hauer SSP2

• Today (2025): 36,216 people
• By 2030: 35,730 · -1.3%
• By 2040: 34,727 · -4.1%
• By 2050: 33,802 · -6.7%
• By 2075: 33,382 · -7.8%
• By 2100: 32,761 · -9.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 5% Two or more races 4% Black 3%
• Common ancestry: Iranian 8% Portuguese 3% Lithuanian 2%
• Foreign-born: 4% · Canada
• Languages at home: 92% English-only · Spanish 4% Arabic 2% Chinese 1%

Political lean MEDSL · Jasper

• 2024 margin: Strong R (+27.6) · D 35.4% · R 63.0% · Other 1.5%
• 2008→2024 swing: -35.1pp toward R · 2008: 7.5pp · 2024: -27.6pp
• All cycles: 2024: R+27.6 2020: R+21.5 2016: R+18.4 2012: D+7.1 2008: D+7.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -45.48%
• Current HPI: 269.6454
• Rent YoY: —
• Metro: Des Moines-West Des Moines, IA
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

+153.5% since first listed

10 events — show timeline

• 2026-05-12 Pending — DMMLS
• 2026-04-24 Price Changed $90,000 DMMLS
• 2026-04-01 Listed $98,000 DMMLS
• 2015-03-11 Sold (Public Records) $32,653 Public Records
• 2015-03-10 Sold (MLS) $32,000 IAR
• 2015-03-10 Sold (MLS) $32,000 NORTHSTARMLS as Distributed by MLS Grid
• 2015-03-10 Sold (MLS) $32,000 DMMLS
• 2014-11-18 Listed $35,500 DMMLS
• 2014-11-15 Listed $35,500 IAR
• 2014-11-15 Listed $35,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-3.6%/yr

Latest (2025): $654 · -15.3% YoY. Source: county tax records.