Investing in Polk City, Iowa: Growth, Price and the Lake

Polk City is small, growing fast, and priced like it. It had 5,543 people at the 2020 Census and 6,630 in the Census Bureau's July 1, 2025 estimate - about 1,100 more, roughly 19.6%, the fastest percentage growth of the towns I've written these guides for. It also has the highest typical value of them. That combination, plus Saylorville Lake, is what an investor has to think through here.

Polk City at a glance

• County: the whole city is in Polk County.
• Typical home value: Zillow puts it at $430,000 as of the end of September 2026, essentially unchanged from $429,500 a year earlier.
• School districts: by Census Bureau district maps, most of the city is in the North Polk Community School District and the southeast part is in the Ankeny Community School District. Confirm the district for a specific address.
• Distance: about 16 straight-line miles from Des Moines and about 18 from Ames.
• The lake: Saylorville Lake, the Army Corps of Engineers reservoir completed in 1977, covers 5,520 surface acres at normal pool, and Big Creek State Park sits on the town's edge.

The investor read on a small, fast-growing town

Growth of nearly 20% in five years is real demand, but in a city of 6,630 people the rental pool is small. Fewer rentals means fewer comparable rents to price from and a smaller tenant pool when a unit turns over. Most of what sells here is newer, owner-occupied housing, so a Polk City rental is usually a deliberate, long-hold choice rather than a volume play.

The rent-to-price check comes first

At the typical value of $430,000, a home would need about $4,300 a month in rent to meet the 1% rule (1% of $430,000 is $4,300). Very few single-family rentals here will reach that, so the strategies that tend to fit are a house hack - a walk-out lower level you rent while you live upstairs - or a long hold where appreciation and paydown carry the return. My guide to house hacking in Polk City covers the layouts that work.

The short-term rental question

Being next to Saylorville Lake and Big Creek makes some investors think short-term rental. Before you count on that income, confirm the city's rules for that property, read any HOA covenants, price insurance for short-term use, and plan for the taxes that apply to short stays. My breakdown of the short-term rental rules investors need to know in Central Iowa is the place to start.

Four checks before you write an offer in Polk City

The first three take minutes in my free deal calculator.

Let's look at a Polk City property together

If you have a Polk City address in mind, send it to me and I'll run the numbers with you and tell you plainly whether it works. For the bigger picture, see the full Polk City overview, what living in Polk City is like, or my Polk City vs. Ankeny comparison. Comparing towns? The same guide exists for Ankeny, Johnston and Altoona.

Sources: US Census Bureau (2020 Census and July 1, 2025 estimates via QuickFacts; 2020 place-by-county file; 2024 Gazetteer internal points; school-district boundaries via TIGERweb); Zillow Home Value Index through September 30, 2026 (a typical-value estimate, not an MLS closed-sale median); US Army Corps of Engineers Saylorville Lake fact sheet; Iowa DNR (Big Creek State Park). Distances are straight-line miles between Census city points; the drive is longer.

Jackson Krile is a REALTOR® on the Flanders Team at RE/MAX Real Estate Center. Licensed in Iowa #S66867000. DMAAR + CIBR member. Educational only, not financial advice.