Iowa City’s Rental Rehab Program is designed to provide funding to rehabilitate single family and duplex rental properties in the City’s targeted neighborhoods. Projects can receive up to $24,999 per unit for rehabilitation funded through a zero-interest loan and a grant. This provides an incentive for owners to invest in and preserve the city’s existing rental stock while maintaining affordability for tenants.

Read the entire program guide here. 

Eligible Applicants

Nonprofit and for-profit owners are eligible to apply. 

Eligible Properties

  • Properties located within the City’s CDBG Targeted Areas will be eligible.
  • Single-family and duplex structures with a valid rental permit.
  • Properties must not have any outstanding property taxes or rental permit fees.
  • Units must be able to be restored to decent, safe and sanitary condition that meets the HOME program criteria. 
  • Applicants must have possession of unit(s) at the time of application.
  • The property must have a comprehensive insurance policy at the time of application.
  • Vacant properties must be rented to an income eligible tenant within six months of the rehabilitation completion.
  • Tenants in occupied properties must be income eligible at the time of application. 
  • During the required period of affordability, units cannot be occupied by relatives of the owner/landlord. 
  • All properties must comply with the City’s housing and building codes and zoning ordinances at the time of completion.

Tenant Eligibility

During the affordability period tenants must have a household income at or below 60% of the Area Median Income (AMI). 

2022 Annual Household Income Limits (effective 6/15/2022, adjusted annually)

Maximum Household Income:

1-person household: $45,780
2-person household: $52,320
3-person household: $58,860
4-person household: $65,400
5-person household: $70,680
6-person household: $75,900

Maximum Rents

During the affordability period, rent may not exceed the HOME Fair Market Rent minus allowances for tenant-paid utilities as established by HUD.  Annual rent increases are limited and reports will be due annually to the City.

2022 Fair Market Rents (effective 6/15/2022, adjusted annually)

Maximum Rents:

Single room occupancy: $567
Efficiency: $757
One bedroom: $848
Two bedroom: $1,063
Three bedroom: $1,510
Four bedroom: $1,819

2022 Utility Allowances (effective 6/15/2022, adjusted annually)

Financing Terms

Funds provided by the City will consist of a zero-interest loan (50%) and a grant (50%) with a maximum funding amount of $24,999 per unit.  Properties must comply with rent and income restrictions for 5 or 10 years, depending on the amount of funds requested.

How to Apply

If you are interested in participating in the Rental Rehab program, submit the online application below.

Rental Rehab Online Application

You may also print out the application and submit by mail or in person.

Rental Rehab Application Form

Tenant Income Form



Neighborhood Services
City Hall, Second Floor
410 E. Washington St.
Iowa City, IA 52240

Liz Osborne: 319-356-5246

David Powers: 319-356-5233



City Government