The median home price in Iowa is $205,375 which has increased by 3.1% since the last year. The Iowa housing market has witnessed a 7.2% year-over-year decline in the number of homes listed. With only a 2-month supply left, the tight inventory is expected to drive an increase in the median sale price.
As per our research, home prices are relatively higher in southern areas near Des Moines, IA. On the other hand, as you move towards the northern areas of the Hawkeye State like Hampton, you can find cheaper housing options.
4 Reasons to live in Iowa 🏞️
- Cheaper Houses: The median home sale price in Iowa is ~205K. But you can get houses between $73K and $158K in cities like Keokuk, Burlington, and Oskaloosa.
- Tax Benefits: Iowa’s income tax brackets are undergoing changes. Under current law, there will be a phased-down transition to a single tax rate for all taxpayers, with two brackets expected in 2025.
- Affordable Grocery: Grocery in cities mentioned in this blog is up to 9.1% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the national average. You can save up to $1,050 per month in rent.
Cheapest Places to Live in Iowa in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Keokuk | $47,571 | $73,542 | 9,623 | 3.3% | 19.3% |
| Oelwein | $41,629 | $91,621 | 5,834 | 5.1% | 17.5% |
| Fort Madison | $48,944 | $96,040 | 10,134 | 3.3% | 14.5% |
| Burlington | $51,628 | $111,731 | 23,611 | 4.6% | 17.8% |
| Creston | $51,366 | $123,484 | 7,384 | 4.8% | 13.8% |
| Waterloo | $54,104 | $131,012 | 66,562 | 2.9% | 17.4% |
| Oskaloosa | $57,949 | $158,780 | 11,482 | 3.9% | 17.0% |
7 Cheapest Places to Live in IA
The annual population growth of 4.9% since 2010 is reflective of people’s intention to move to Iowa. If you’re considering shifting to Iowa, here are some cities that offer affordable living options:
1. Keokuk
| 🟢 Cost of Living Compared to National Average | 27.9%⬇️ |
| 🏡 Median Home Price | $73,542 |
| 💲 Median Rent | $639 |
| 🌅 Known For | Rand Park |
Keokuk is an affordable place to live in Iowa. Its median house rent ranges from $620 – $750. It also offers affordable grocery which is 9.3% lower than the national average.
Life in Keokuk is characterized by enchanting beauty and promise. Homes on elevated bluffs offer stunning views of the Mississippi River, and charming historic houses grace the lovely Grand Avenue.
» Homes for Sale in Keokuk, IA: Find your dream home in this city.
2. Oelwein
| 🟢 Cost of Living Compared to National Average | 26.9%⬇️ |
| 🏡 Median Home Price | $91,621 |
| 💲 Median Rent | $700 |
| 🏞️ Known For | Railway Museum |
Oelwein is one of the most budget-friendly rental destinations in Iowa with an average home rent ranging from $600 – $1,100. It also offers affordable utility, which is 1.7% lower than the national average.
Oelwein has an overall livability index score of 56, placing it in the top half of communities in the U.S. The index considers factors such as education, crime rates, cost of living, and residents’ overall happiness.
» Homes for Sale in Oelwein, IA: Browse thousands of property listings in Hub City.
3. Fort Madison
| 🟢 Cost of Living Compared to National Average | 27.9%⬇️ |
| 🏡 Median Home Price | $96,040 |
| 💲 Median Rent | $600 |
| 🏖️ Known For | Old Fort Madison |
With rental costs below the national average, Fort Madison stands as one of the most affordable cities to live in Iowa. The house rent price is between $500 – $1,150.
Fort Madison boasts historical significance as the location of the first U.S. military fort in the upper Mississippi region. A replica of the original fort stands along the river, preserving the area’s heritage.
» Homes for Sale in Fort Madison, IA: View all the properties for sale in this city.
4. Burlington
| 🟢 Cost of Living Compared to National Average | 27.4%⬇️ |
| 🏡 Median Home Price | $111,731 |
| 💲 Median Rent | $900 |
| 🏖️ Known For | Snake Alley |
Burlington offers budget-friendly living with a median rent that is $1,100 lower than the national median. With transportation costs being 39.5% lower than the national average, the city stands out as one of the most inexpensive places to live in Iowa.
Burlington’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in America. Moreover, the city provides a wide selection of high-quality, brand-name clothing, home decor, and more at unbeatable prices.
» Homes for Sale in Burlington, IA: Browse through thousands of affordable properties.
5. Creston
| 🟢 Cost of Living Compared to National Average | 27.3%⬇️ |
| 🏡 Median Home Price | $123,484 |
| 💲 Median Rent | $800 |
| 🎨 Known For | Hot Air Brewing |
Often referred to as the ‘Vibrant City,’ Creston’s cost of living is 27.3% lower than the state average. The grocery expenses are 6.2% lower than the national average.
Creston is home to several educational institutes. The Southwestern Community College and Buena Vista University provide higher education opportunities. It also contributes to the city’s cultural and academic vibrancy.
» Homes for Sale in Creston, IA: Browse through thousands of properties in this city.
6. Waterloo
| 🟢 Cost of Living Compared to National Average | 27.3%⬇️ |
| 🏡 Median Home Price | $131,012 |
| 💲 Median Rent | $795 |
| 🏫 Known For | Lost Island Water Park |
The house rent in Waterloo is between $350 – $3,400. With an average household income of $54,104, you can comfortably live in this city.
Waterloo is a compelling real estate choice for outdoor enthusiasts seeking affordable living in Iowa. The annual cost for housing, food, health care, and other essentials for a single adult in Waterloo is $30,888.
» Homes for Sale in Waterloo, IA: Find a home in one of the cheapest places to live in Iowa.
7. Oskaloosa
| 🟢 Cost of Living Compared to National Average | 24.7%⬇️ |
| 🏡 Median Home Price | $158,780 |
| 💲 Median Rent | $950 |
| 🖼️ Known For | Edmundson Park |
Oskaloosa is indeed one of the best places to live in Iowa, with a slight year-over-year median home price growth of 3.3% in December 2023. The annual expenditure on food for an individual amounts to $2,933. This makes it one of the most budget-friendly options across the country.
Oskaloosa is renowned for its stunning natural beauty. The city has a strong connection to agriculture, food production, and bioscience, which are integral to its history, culture, and economy.
» Homes for Sale in Oskaloosa, IA: Get yourself a home in this city.
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Bottom Line
The cost of living in Iowa is 7% lower than the national average. Nevertheless, it is still home to some of the most expensive cities in America. However, if you want to shift to Iowa, you can find affordable housing in cities like Keokuk, Oelwein, and Burlington.
Cities like Fort Madison and Waterloo have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
Find Homes for Sale in IA Under Your Specific Budget
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Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Iowa, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
Frequently Asked Questions
Where is the cheapest place to live in Iowa?
The cheapest place to live in Iowa is Keokuk. It offers one of the most transportation system in the state, which is 40.8% lower than the national average.
» 7 Cheapest Places to Live in Iowa: Find out the other cheapest places to live in Iowa!
What makes Iowa the cheapest place to live in?
No, it is not. The median home value is $205,375. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
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