The first site I looked at had Iowa favored by 5.5 pts. Under this current iteration of the coaching staff (i.e. since 2017 when the current coordinators were put in place), Iowa continues to be one of the top teams in the country at winning when they are favored (28-3 over that span, trailing only Tex A&M, Clemson, Ohio St., Alabama, and Notre Dame in win% among P5).
They actually do pretty well against the spread as favorites as well, covering 60% of the time as favorites (6th best among P5 schools).
I don't think Indiana is set up to take advantage of Iowa's weaknesses (ISU is a different story). I think Iowa wins and covers.