Fort Madison, IA Housing Market

Market Overview

Fort Madison, IA earns a PropertyIQ Score of 80/100, positioning it as a relatively strong market within this scoring model. The score is driven by solid 12-month home value momentum of 7.55%, a median days on market of 66 days, and a low share of listings with a price cut at 12.1%. These indicators point to a market that has experienced meaningful price growth over the past year while still maintaining steady buyer interest. Compared with state benchmarks, however, Fort Madison remains an affordability play: the median home value of $126,448 is roughly 53% of Iowa’s median of $239,547, and the rent index of $690 is well below the state rent index of $972. The local unemployment rate of 3.2% matches the state average exactly.

The market’s profile is balanced rather than overheated. The 3-month home value momentum of 0.43% is positive but much lower than the 12-month figure, indicating that price gains have cooled. With 130 homes for sale and a median time on market of 66 days, the area is not showing signs of extreme inventory scarcity or prolonged stagnation. The reported home value year-over-year dollar change is $28, while median household income is $62,382, below Iowa’s $75,059. These figures suggest a lower-cost market where affordability is central to its identity.

Key Trends

One clear trend is decelerating price growth. The 12-month home value momentum of 7.55% shows that values have risen over the past year, but the 3-month momentum of 0.43% suggests the pace has slowed considerably. This pattern indicates a market shifting from faster appreciation toward a flatter, more stable pricing environment.

A second trend is strong affordability relative to the state. The median home value in Fort Madison is $126,448, compared with Iowa’s $239,547. Median household income of $62,382 is lower than the state’s $75,059, but the gap in home values is wider than the gap in incomes. In practical terms, a home in Fort Madison costs about two times local median income, while the state median home costs roughly three times state median income. That affordability may support demand from local buyers.

A third trend is steady but unhurried market movement. The median days on market is 66 days, and 12.1% of listings have a price cut. That price-cut share is relatively modest and, when combined with the days on market, points to sellers who are not aggressively discounting. With 130 homes for sale, inventory is present but not overwhelming.

A fourth trend is a modest rental market. The rent index of $690 is below the state benchmark of $972, meaning rents in Fort Madison are comparatively low. This may influence investor calculations, as lower rents can mean lower gross revenue despite lower purchase prices. Population growth is listed as N/A, so there is no data to indicate whether demographic shifts are adding demand.

Who Is This Market For

Fort Madison is well suited to first-time homebuyers and budget-conscious buyers. With a median home value of $126,448 and median household income of $62,382, the local price-to-income relationship is more favorable than the state average. Buyers who might be priced out of Iowa’s broader market at $239,547 could find more room here. The unemployment rate of 3.2%, matching the state, also supports the presence of stable local employment.

The market may also appeal to buy-and-hold investors who prioritize lower acquisition costs. A median home value of $126,448 is relatively accessible, but the rent index of $690 is below the state’s $972, so investors should expect more modest rental income. The relatively low share of price cuts at 12.1% and a median days on market of 66 days suggest that properties are moving without heavy discounting, which can be reassuring for buyers concerned about future resale. Move-up buyers may find opportunities as well, though the overall affordability profile skews toward entry-level and value-oriented buyers. Because population growth is not available, it is difficult to identify a strong influx of new residents as a demand driver.

Outlook

The outlook for Fort Madison is cautiously positive and grounded in the available data. The 12-month home value momentum of 7.55% indicates that the market has appreciated over the past year, while the 3-month figure of 0.43% points to cooling rather than continued rapid growth. Median days on market of 66 days and a price-cut share of 12.1% suggest enough buyer activity to keep the market balanced, but not enough to signal a sharp upward breakout. With median home values at $126,448 and rents at $690, the area’s affordability relative to Iowa benchmarks may continue to attract cost-conscious buyers. Unemployment of 3.2% matches the state average, supporting stable household income. However, population growth data is missing, so the outlook cannot assume expanding demographic demand. Overall, the data supports moderate, affordability-driven activity rather than speculative growth.