Iowa Statewide Rule

Iowa Late Fee Caps (Sec. 562A.9(4))

Some RestrictionsApplies statewide across Iowa (2026)

Key Facts

Rent $700 or less: Max $12/day, $60/month (Sec. 562A.9(4))
Rent over $700: Max $20/day, $100/month (Sec. 562A.9(4))
Statutory grace period: No statutory requirement; set by lease
Rent due: Without demand or notice (Sec. 562A.9(3))

Last verified: September 5, 2026

Summary

Iowa Code Sec. 562A.9(4) caps late fees by rent amount. If monthly rent is $700 or less, a lease may not charge over $12 per day or $60 per month total. If rent is more than $700, the cap is $20 per day or $100 per month total. A lease term exceeding these limits is unenforceable.

4. For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.

View official code

Full Breakdown

Iowa Code Sec. 562A.9(4) sets a two-tier limit on late fees. 'For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month.' For rent greater than $700 per month, a lease 'shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.' Iowa law sets no separate statutory grace period; rent is 'payable without demand or notice at the time and place agreed upon' under Sec. 562A.9(3), so the lease controls the due date and any grace period.

Violations & Penalties

A late fee charged above the Sec. 562A.9(4) daily or monthly cap is not enforceable; a tenant cannot be required to pay the excess, and an eviction or claim premised on the unlawful fee can be challenged.

Frequently Asked Questions

What is the maximum late fee a landlord can charge in Iowa?

Under Iowa Code Sec. 562A.9(4), if rent is $700 or less the cap is $12 per day or $60 per month; if rent exceeds $700 the cap is $20 per day or $100 per month.

Does Iowa require a grace period before charging a late fee?

No. Iowa sets no statutory grace period. Rent is payable without demand at the agreed time under Sec. 562A.9(3), so any grace period and the due date come from the lease, while the late-fee caps in Sec. 562A.9(4) still apply.

Sources

Iowa Code Sec. 562A.9 (terms of rental agreement)

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.