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AI Insights:
03.15 15:15 UpdatedFair Value Reasoning:
Although 2026 is a midterm year for a Republican president and features an Open Seat, Iowa has firmly established itself as a 'deep red' state (Trump won by +13% in 2024 according to context). The current market probability of 42% for Democrats significantly deviates from fundamentals. Referencing historical ratings from Sabato's Crystal Ball or the Cook Political Report, such seats are typically rated 'Likely Republican,' implying a GOP win probability of 75-85%. The market is currently overpricing 'open seat' uncertainty while ignoring the reality of the state's rightward demographic shift and solid Republican base.
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Divergence
Significant divergence exists. The market price (Democrat ~42%) implies a race bordering on a 'Toss-up.' However, based on Iowa's recent electoral history (Trump +13%) and political landscape, mainstream political analysis would typically view this seat as a safe defensive hold for Republicans (Likely/Solid Republican), with a rational win probability above 70%. The market price includes an excessive midterm risk premium.