Developed compounds of magnetic iron iodide nanoparticles (MIINPs) were simply and cheaply prepared for their potential use in the bioapplications through magnetic hyperthermia therapy, using a co-precipitation method based on the study of various factors such as temperature, molar ratio and pH. Two samples of MIINPs were chosen based on the proportions of iron and iodide in the sample, respectively 45 and 55% in MIINPs-1 and 52 and 48% in MIINPs-2. Fourier transforms infrared spectroscopy (FTIR), thermal analysis (TA), energy dispersive X-ray spectroscopy (EDX), and X-ray diffraction (XRD) were used to characterize the prepared compounds. The chemical composition of MIINPs-1 and MIINPs-2 was determined by means of an elemental analysis using EDX technique and confirmed using structural modeling by Visual Minteq 3.0, Match 1.9 and Endeavour 1.7 software. The magnetic properties of both samples were measured and found to be superparamagnetic materials. Both MIINPs-1 and MIINPs-2 samples have approximately the same magnetization (nearly 36.1 emu/g) in the 500 Oe coercive field as safe operating limits for MHT achieving 94% and 86.4% of their saturation values respectively. Specific absorption rates (SARs) were practically and theoretically determined as well as it was found that the practical SAR value of MIINPs-1 is much closer to the theoretical value than in the case of MIINPs-2.