Franklin (IA) Investor Pulse Report (2025-Q4)

Landlord-owned properties constitute a significant 17.3% of the total Single-Family Residential market in Franklin County, totaling 562 homes.

The investor landscape is overwhelmingly controlled by individual investors, who own 462 properties, representing 82.2% of all landlord-owned SFRs. In contrast, company-owned entities hold 114 properties, or 20.3% of the portfolio.

Cash is the preferred method of ownership, with landlords owning 429 properties (76.3%) free of financing. This is more than triple the 133 financed properties, indicating a market of well-capitalized investors who are less sensitive to interest rate fluctuations.

The investor portfolio is almost entirely dedicated to rentals. A total of 534 properties, or 95.0% of the landlord-owned stock, are non-owner-occupied, underscoring the vital role these investors play in providing rental housing for the county.

By entity, the market is composed of 585 distinct landlords, with individual investors (519 entities) outnumbering companies (66 entities) by a ratio of nearly 8-to-1. This highlights a fragmented market of many small-scale participants rather than a consolidated one.

In Q4 2025, investors demonstrated remarkable purchasing power, acquiring properties for an average of $130,833, a full $62,000 less than the $192,833 paid by traditional homeowners. This represents a substantial 32.2% discount and highlights a key strategic advantage for landlords in the market.

The landlord pricing advantage shows extreme volatility, defying a consistent trend. While landlords secured deep discounts in Q2 (50.9%) and Q4 (32.2%), they actually paid a 12.4% premium over homeowners in Q3, suggesting their acquisition strategy is highly responsive to specific opportunities rather than broad market trends.

Overall property prices for investors have appreciated significantly since the 2020-2023 period. The average acquisition price of $69,168 during those years has risen to an average of $150,888 in 2025, an increase of 118.1%, signaling strong market growth.

Despite the sharp quarterly fluctuations, the data consistently shows that landlords are able to find and execute on deals well below the typical market rate paid by owner-occupiers, a testament to their market expertise and negotiation capabilities.

Comparing the landlord average price in Q4 2025 ($130,833) to Q4 2024 ($65,038) reveals a 101.2% year-over-year increase in the price point of assets being acquired by investors, indicating a shift towards higher-value properties.

Investor activity accounted for 13.8% of the Franklin County housing market in Q4 2025, with landlords acquiring 4 of the 29 total SFRs sold.

The quarter's purchasing activity was exclusively driven by small-scale investors. Mom-and-pop landlords (Tiers 01-04) made up 100% of these acquisitions, reinforcing the absence of large-scale or institutional capital in the local market.

New entrants are a key driver of activity, with single-property landlords (Tier 01) making up the bulk of Q4 buying. These investors acquired 3 of the 4 properties (75.0%) purchased by landlords, represented by 4 distinct new entities entering the rental market.

The data shows a complete lack of purchasing from mid-size or institutional investors (Tiers 05-09), who collectively acquired 0 properties. This concentrates all market momentum within the smallest portfolio tiers.

The other 25.0% of landlord activity came from investors in the 3-5 property tier, who purchased 1 property via 2 co-owning entities, further illustrating the small-scale nature of investment in the county.

The investor market in Franklin County is defined by small-scale ownership, with mom-and-pop landlords (1-10 properties) controlling a commanding 92.6% of all investor-held SFRs.

First-time and single-holding investors are the backbone of the market. The single-property tier alone accounts for 349 properties, a 59.0% majority share of the entire investor-owned portfolio, highlighting the market's accessibility to new entrants.

Ownership concentration dissipates rapidly in larger tiers. After the small landlord tiers, mid-size investors (11-50 properties) hold just 7.2% of the portfolio, and there is no ownership recorded in the institutional (1000+) tier.

The distribution reveals a highly fragmented market structure, composed of many small players rather than a few dominant ones. Tiers for investors with 1-5 properties collectively hold 87.6% of the rental housing stock.

There is virtually no large-scale ownership in Franklin County. The largest recorded portfolio segment is the 101-1000 property tier, which contains only a single property, accounting for just 0.2% of the market.

Individual investors form the foundation of the rental market, owning the vast majority of properties in smaller portfolio tiers. In the crucial single-property tier, individuals own 323 homes (91.5%) compared to just 30 owned by companies.

A clear crossover point emerges as portfolios grow. While individuals dominate tiers 1 through 5, companies become the majority owners in the 6-10 property tier, holding 23 properties (63.9%) versus 13 for individuals.

This pattern continues into larger tiers, solidifying the trend of professionalization through incorporation as portfolios scale. In the 21-50 property tier, companies own a dominant 77.8% of the properties.

Even in company-dominated tiers, individual ownership persists. For instance, in the 11-20 property tier, individuals still hold a majority stake with 19 properties (55.9%), indicating that many mid-size investors continue to operate without incorporating.

The data clearly illustrates two distinct investor paths: a broad base of individuals starting with 1-2 properties, and a more focused group that uses corporate structures to manage portfolios as they expand beyond 5 properties.

The vast majority of investor-owned properties in Franklin County are located in a single zip code, 50441 (Hampton), which is home to 308 landlord-owned SFRs. This represents 54.8% of the entire investor portfolio in the county.

While Hampton has the highest volume, its investor ownership rate of 17.2% is not the highest in the county. This indicates that while it's a large market, it is not the most saturated with rental properties.

Smaller zip codes exhibit the highest investor penetration rates, pointing to specialized rental submarkets. For example, zip code 50227 leads the county with a 29.4% investor ownership rate, followed closely by 50071 at 27.6%.

The contrast between the leader by count (50441) and the leaders by percentage (50227, 50071) shows that investor strategy varies across the county. Some areas attract high volumes of investment, while others have become niche, high-density rental markets.

Outside of these key areas, investor presence is minimal. For instance, zip code 50126 has only 1 investor-owned property, accounting for just 2.5% of its market, highlighting the hyper-local nature of investment concentration.

Investors in Franklin County are actively expanding their portfolios, demonstrating a strong net-buyer position. In Q4 2025, landlords purchased 6 SFR properties while selling only 2, resulting in a net gain of 4 properties and a buy-to-sell ratio of 3.0x.

The trend of portfolio growth has been consistent throughout the entire year. Across 2025, investors acquired 43 homes and sold only 17, for a net increase of 26 properties and an annual buy-to-sell ratio of 2.53x.

This accumulation phase follows an even more aggressive period in 2024, when landlords bought 44 properties and sold just 7. This represents a powerful 6.29x buy-to-sell ratio, indicating a sustained, multi-year strategy of portfolio expansion in the county.

Transaction volume shows a slight cooling from its peak. While Q3 2025 saw the highest activity with 20 purchases, Q4 moderated to 6 purchases, suggesting a more selective acquisition environment heading into the new year.

The transaction data contains no records for institutional-tier (1000+) investors, either buying or selling. This reinforces that all market dynamics—both acquisition and disposition—are being driven by small-to-mid-sized local landlords.

In Q4 2025, landlords were involved in 6 of the 47 total SFR transactions in Franklin County, capturing a 12.8% share of market activity.

All landlord transaction activity was concentrated at the smallest end of the investor spectrum. Single-property landlords (Tier 01) were most active, conducting 4 transactions, while small landlords (Tier 03) conducted the remaining 2.

A key finding from the quarter is the source of inventory. Landlords made zero purchases from other investors, meaning 100% of their acquisitions came from outside the landlord community, primarily from traditional homeowners.

Pricing strategies differ slightly by tier, even among small investors. Single-property landlords paid a higher average price of $136,250, while landlords in the 3-5 property tier acquired homes for a lower average of $120,000, suggesting more experienced investors may secure better deals.

There was zero transaction activity from institutional investors, confirming that the transactional market, like the ownership market, is entirely driven by local, mom-and-pop participants.