This article describes the solution combustion synthesis technique as applicable to iron oxide powder production using urea as fuel and ferric nitrate as an oxidizer. It focuses on the thermodynamic modeling of the combustion reaction under different fuel-to-oxidant ratios. X-ray diffraction showed magnetite (Fe3O4) and hematite (alpha-Fe2O3) phase formations for the as-synthesized powders. The smallest crystallite size was obtained by stoichiometric chemical reaction. The magnetic properties of the samples are also carefully discussed as superparamagnetic behavior.