Iowa Security Deposit Law
What landlords in Iowa need to know about deposit limits, refund deadlines, interest, and penalties for getting it wrong.
Deposit cap
2 months' rent
Refund deadline
30 days
Interest required?
No
No statewide interest requirement.
Separate account?
Not required
Penalty for noncompliance
Bad-faith retention can result in statutory damages up to twice the deposit.
Statute: Iowa Code § 562A.12
This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above or with a local attorney before relying on it. See all states.