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Clayton County, IA

Rent vs Own in Clayton County, Iowa

Renting beats owning in Clayton County on these numbers. HUD's 2-bedroom benchmark is $919/mo against roughly $1,083/mo to own. Here is where the gap comes from. Owner-occupied homes: 5,856.

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Renting is cheaper in Clayton County

A 2-bedroom rental here runs $919/mo, below the $1,083/mo that owning works out to under the assumptions below. That is a $164/mo difference.

Based on 20% down, 6.5% rate, 30-year mortgage. Adjust below.

What This Data Tells Us About Renting vs Owning in Clayton County

Primary driver

Income supports the median purchase price

Median household income is $67,242, putting the home-price-to-income ratio at 2.5x. Property taxes consume 3.2% of median income; use those two burdens separately rather than treating the mortgage payment as the whole ownership cost.

Decision signal 2

The county sits near the state middle

Using the assumptions above, Clayton County ranks 65 of 99 Iowa counties for buy-vs-rent value (rank 1 = the best relative deal for buying). It sits ahead of 34 other Iowa counties on this measure.

Decision signal 3

The monthly comparison favours renting

The median home value in Clayton County, Iowa is $168,500 with a median annual property tax of $2,181, an effective rate of 1.29%. At 20% down on a 6.5% 30-year mortgage, the all-in monthly ownership cost comes to $1,083, above the $919/mo HUD prices a 2-bedroom rental at. Renting is about $164/mo cheaper before equity build-up or long-term appreciation.

Decision signal 4

HUD moved the rent benchmark up

HUD raised its 2-bedroom Fair Market Rent for Clayton County from $877/mo in FY2025 to $919/mo in FY2026: it increased by $42/mo (+4.8%). A rising rent benchmark widens the gap in favour of owning over time, because the mortgage share of the ownership cost below is fixed at origination while the rent it is compared against reprices every year.

Methodology & disclaimer

This calculator is for informational purposes only and is not tax, legal, or financial advice. Property tax figures come from the U.S. Census Bureau ACS 5-Year Estimates and rent figures come from HUD Fair Market Rents; both describe area medians, not individual transactions. Insurance is estimated at 0.35% of home value annually and closing costs, maintenance, HOA, and PMI are not included. Consult a licensed mortgage, tax, or real-estate professional before making a buy-or-rent decision based on these numbers.

Monthly Cost Breakdown

Estimated Monthly Ownership
$1,083
Mortgage (P&I) $852
Property Tax $182
Insurance (est.) $49
Monthly Rent (2-BR FMR)
$919
Studio$682
1-Bedroom$700
2-Bedroom$919
3-Bedroom$1,127
4-Bedroom$1,304

Adjust Your Scenario

Affordability Context

Median Household Income
$67,242
$5,604/mo
Home Price / Income
2.5x
Affordable (≤3x)
Tax-to-Income Ratio
3.2%
National benchmark: 2-4%

Who actually pays it here

Even with the loan gone, the largest group of owners here still owes $3,000 or more every year. That is a permanent monthly obligation of a few hundred dollars, and it is why "paid off" understates the real cost of holding property in this county.

As across most of the country, six-figure earners between $100,000 and $200,000 account for more of these write-offs than any other group.

Bill bands are Census ACS counts of owner-occupied homes without a mortgage. Income brackets are IRS Statistics of Income county data for tax year 2022, counted over FILERS reporting real-estate taxes on Schedule A, which is a smaller group than homeowners: most filers take the standard deduction.

Nearby Counties

Polk County
Home: $262,100 Tax: $4,396/yr
Linn County
Home: $214,300 Tax: $3,547/yr
Scott County
Home: $222,000 Tax: $3,273/yr
Johnson County
Home: $308,600 Tax: $4,681/yr
Black Hawk County
Home: $188,900 Tax: $2,842/yr
Dubuque County
Home: $237,300 Tax: $2,919/yr

Frequently Asked Questions

Is it cheaper to rent or buy in Clayton County, Iowa? ▼
Buying comes out ahead in Clayton County under the standard 20%-down, 6.5% assumptions used on this page, by roughly $164 a month. That gap narrows or reverses with a bigger down payment, a lower rate, or a longer time horizon (owning builds equity that renting doesn't), so treat the number as a starting point, not a verdict, and rerun it with your own terms in the calculator above.
What is the average rent in Clayton County? ▼
HUD prices a 2-bedroom unit at $919/mo here. Sizing up matters: going from a studio to a 4-bedroom adds about $622/mo, so the per-bedroom jump is worth checking against your actual space needs before assuming the 2-BR figure applies to your situation.
How much house can you afford in Clayton County? ▼
On the common 3x-income guideline, a $67,242 household here can afford up to $201,726, which comfortably covers this county's $168,500 median home price -- a healthier affordability picture than many of the counties tracked on this site.
What is the median home price in Clayton County? ▼
$168,500, per the Census Bureau's ACS 5-Year Estimates. The property tax on that value works out to roughly 1.29% a year, in line with typical rates for the area.
How does Clayton County compare to other Iowa counties for renting vs buying? ▼
Out of 99 Iowa counties ranked here on buy-vs-rent value, Clayton County lands at spot 65, roughly in the middle of the pack statewide. See the <a href="/states/iowa">Iowa property tax overview</a> for how neighboring counties stack up.
Is rent going up or down in Clayton County? ▼
HUD's 2-bedroom Fair Market Rent figure has risen 4.8% between the FY2025 and FY2026 publications, the two most recent years tracked here.

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Read our methodology - how this data is sourced, computed, and verified.

Data sourced from the U.S. Census Bureau (American Community Survey). See our methodology for details. Retrieved and formatted by PlainPropertyTax

Source: U.S. Census Bureau, Government Finances State and local property tax revenue by jurisdiction · 2025

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