Davis (IA) Investor Pulse Report (2026-Q1)

In Davis County, investors hold a portfolio of 250 Single-Family Residential (SFR) properties, which constitutes 13.7% of the total 1,822 SFRs in the market. This highlights a significant, yet not overwhelming, investor presence in the local housing scene.

Individual investors are the primary force in the market, owning 190 properties, or 76.0% of the investor-held portfolio. Company-owned properties account for the remaining 64 properties (25.6%), indicating that the market is driven by smaller-scale operators rather than large corporations.

The portfolio is heavily geared towards rental income, with 234 of the 250 properties classified as rented. This demonstrates a clear focus on buy-and-hold strategies among Davis County investors.

When it comes to financing, cash is king. Investors own 179 properties free and clear, more than double the 71 properties that are financed. This suggests a market with financially stable investors who can move quickly on acquisitions without relying on traditional lending.

The ownership structure by entity count reinforces the dominance of small players. There are 260 distinct landlords, of which 224 are individuals and only 36 are companies, a ratio of more than 6-to-1.

In the first quarter of 2026, landlords in Davis County demonstrated a distinct pricing advantage, acquiring properties for an average of $119,500. This was 16.8% less than the $143,698 paid by traditional homeowners, representing a significant cash discount of $24,198 per transaction.

This pricing gap, while still large, represents a notable tightening from previous periods. For instance, the discount was an extraordinary 74.3% in Q2 2025 ($61,250 vs $238,114) and 79.6% in Q1 2025 ($35,000 vs $171,867), signaling a market that is becoming more competitive for investors.

Average acquisition prices for landlords have seen dramatic growth, indicating strong local market appreciation. Prices have nearly doubled from the 2020-2023 average of $62,635 to the Q1 2026 average of $119,500.

The trend of landlords paying significantly less than homeowners is consistent across all recent quarters. This persistent pattern suggests that investors are successfully targeting undervalued assets, purchasing off-market properties, or leveraging cash offers to secure better deals.

Investor activity accounted for 17.6% of all SFR sales in the last quarter, with landlords purchasing 3 of the 17 total properties sold in Davis County. This level of activity establishes investors as a consistent and material component of market demand.

The entirety of this purchasing activity was driven by small-scale 'mom-and-pop' investors (Tiers 01-04), who acquired all 3 properties. This highlights the grassroots nature of real estate investing in the area.

Institutional investors (Tier 09, 1000+ properties) were completely inactive, making zero purchases. This absence contrasts sharply with national headlines and underscores the local, small-investor character of the Davis County market.

New market entrants are a key driver of activity. The single-property tier saw 2 new entities enter the market by purchasing 1 property, indicating a healthy influx of first-time landlords.

The purchasing was distributed among the smallest tiers, with one property each bought by landlords in the 1-property, 3-5 property, and 6-10 property tiers. This balanced activity shows sustained growth across the entire small-investor spectrum.

The investor landscape in Davis County is overwhelmingly dominated by small-scale operators. Mom-and-pop landlords, defined as those owning 1-10 properties, control a massive 91.1% of all investor-owned SFRs.

Single-property landlords form the bedrock of the market. This tier alone accounts for 152 properties, representing a 58.7% majority share of the entire investor portfolio. This signifies a low barrier to entry and a market characterized by individual investors rather than large conglomerates.

In a stark illustration of the market's structure, institutional investors (owning 1000+ properties) have zero presence, holding 0.0% of the properties. This complete absence challenges the common narrative of corporate landlords dominating housing markets.

Mid-size landlords (11-1000 properties) represent a very small fraction of the market. The combined share of all tiers from 11 properties upwards is just 8.9%, further emphasizing the concentration of ownership at the smallest scale.

The data reveals a highly fragmented ownership base, where the typical landlord owns just a few properties, shaping a market dynamic that is fundamentally local and small-business oriented.

A distinct crossover point in ownership structure occurs once a portfolio surpasses 10 properties. In the 11-20 property tier, companies become the dominant owners, holding 16 properties for a 94.1% share, compared to just 5.9% for individuals.

In the smaller tiers, individual investors are the clear majority. Individuals own 87.7% of single-property portfolios, 61.1% of two-property portfolios, and 81.8% of portfolios with 3-5 properties, confirming their control over the entry-level and small-scale rental market.

Even in the 6-10 property tier, individuals maintain a strong majority with 69.7% ownership (23 properties) compared to companies at 30.3% (10 properties). This suggests that incorporating is a strategy reserved for investors managing larger, more complex portfolios.

This pattern reveals a typical growth trajectory for a real estate investor in Davis County: starting as an individual and potentially incorporating into a company as their holdings scale into the double digits to manage liability and assets more formally.

The sharp transition at the 11-20 property mark indicates a strategic threshold where the benefits of a corporate structure outweigh the simplicity of individual ownership for local investors.

Investor ownership in Davis County is highly concentrated geographically, with the 52537 zip code (Bloomfield) serving as the undisputed hub of activity. This single area contains 204 investor-owned properties, representing an investor ownership rate of 13.7%.

While 52537 dominates by sheer volume, a few smaller, outlying zip codes exhibit extremely high saturation rates. For instance, zip code 52551 is 100% investor-owned and 52554 is 50% investor-owned, though these figures are based on very small numbers of total properties.

This geographical distribution points to a primary investment strategy focused on the county's main population center, supplemented by opportunistic purchases in more rural areas.

The second and third most active areas by property count, 52552 (15 properties) and 52560 (14 properties), have significantly less activity than the primary zip code, reinforcing the single-hub model of investment in the county.

The contrast between the high-count area (52537) and the high-percentage areas (52551, 52554) shows two different investor dynamics: a stable, scaled rental market in the main town and highly targeted, possibly niche, investments in smaller communities.

Transaction data reveals a clear trend of portfolio growth among Davis County landlords, who are consistently net buyers. In the first quarter of 2026, investors purchased 4 properties while only selling 1, demonstrating strong confidence in the local market.

This pattern of accumulation is not new. Throughout 2025, landlords maintained their status as net buyers, acquiring 23 properties and selling 12 for a net gain of 11 properties. This steady growth highlights a long-term buy-and-hold strategy.

The buy-to-sell ratio has accelerated recently. The 4-to-1 buy/sell ratio in Q1 2026 is stronger than the roughly 2-to-1 ratio observed during 2025, suggesting an increase in buying momentum at the start of the new year.

Reflecting their 0% market share, institutional investors in the 1000+ property tier were completely absent from the transaction market, recording zero buys and zero sells in all observed timeframes.

The data consistently shows that the growth in investor-owned housing in Davis County is being driven by existing small landlords expanding their portfolios and new small landlords entering the market, not by large-scale institutional players.

In the first quarter of 2026, landlords participated in 4 of the 23 total SFR transactions in Davis County, capturing a 17.4% share of all market activity. This demonstrates that investors are an active and integral part of the local real estate ecosystem.

The entire volume of investor transactions was driven by mom-and-pop landlords (Tiers 01-04), reinforcing their role as the exclusive drivers of investor activity in the county. Institutional investors (Tier 09) had no transaction activity.

An important finding is that 0% of the properties purchased by investors in Q1 were acquired from other landlords. This lack of inter-landlord trading suggests that investors are sourcing their deals primarily from the traditional market, likely buying from homeowners or heirs.

Purchase prices varied within the small-investor segment. The landlord in the 3-5 property tier paid the most at $160,000, while new single-property landlords paid an average of $100,000, showcasing different acquisition strategies even among smaller players.

This transaction behavior, focused on acquiring properties from outside the investor pool, is a primary mechanism through which the share of rental housing in Davis County grows over time.