Real Estate Math
An Iowa investor's property has a market value of $425,000. Annual property taxes are $5,100. What is the effective tax rate as a percentage of market value?
A1.2%✓ Correct
B0.83%
C1.5%
D2.4%
Explanation
Effective tax rate = Annual taxes / Market value = $5,100 / $425,000 = 0.012 = 1.2%. Using the values given ($425,000, $5,100), apply the appropriate formula.. The correct answer is 1.2%.. This is a common calculation on the Iowa real estate exam.
Related Iowa Real Estate Math Questions
- A 6-unit apartment building in Iowa has each unit renting for $750/month. What is the annual gross potential income?
- An Iowa property has a market value of $310,000 assessed at 100% for commercial use. Levy rate is $42 per $1,000. What is the annual tax bill?
- An Iowa homeowner pays $1,650/month on a 30-year mortgage. Over the full loan term, what is the total amount paid?
- An Iowa listing sells after 45 days. Closing costs paid by the seller total $3,800 plus the 6% commission. If the sale price was $235,000, what are the seller's total closing costs including commission?
- An Iowa property has a GRM of 9 and monthly gross rents of $1,800. What is the estimated value?
- An Iowa investment property has annual gross income of $96,000. After 7% vacancy and $32,000 operating expenses, what is the NOI?
- An Iowa buyer wants a monthly principal and interest payment of no more than $1,200. At 7% annual interest on a 30-year fixed mortgage, the payment factor is $6.65 per $1,000 borrowed. What is the maximum loan amount?
- An Iowa investment property purchased for $350,000 with a 30% down payment. Annual NOI is $28,000. What is the cap rate?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →