25 Cheapest Places to Live in Iowa

Written by: SoFi

February 20, 2024

Iowa, the Hawkeye state, is known for its corn fields and state fair. It’s home to a population of about 3.2 million people and has a strong economy with just a 3% unemployment rate (compared to 3.9% nationwide). The cost of living is also 11% lower than the country’s average. Check out the best places to live in Iowa, whether you’re looking broadly or want to find the spots most suitable to families, seniors, or young professionals.

There are plenty of options to choose from when looking for the best places in Iowa to live. Some cities, like Des Moines and Cedar Rapids are especially well-suited to working professionals and young families, particularly in more affordable surrounding areas.

Other parts of the state are more peaceful and affordable for those who like the quiet life, such as Clear Lake.

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Best Affordable Places to Live in Iowa

Ready to discover the best affordable places to live in Iowa? We’ve got you covered with five options.

1. Urbandale

Located just 15 minutes outside of Des Moines, Urbandale is a growing suburban community with an active downtown as well as beautiful public parks. It’s ideal for both families and young professionals who want proximity to the state’s capital city.

Population: 46,648
Median Household Income: $100,589
Cost of Living: 86% of U.S. average
Median Rent Price: $1,450
Home Price-to-Income Ratio: 3.25
Average Property Tax: 2.1%

Housing Affordability: Renters will enjoy a cooling market in Urbandale. Monthly rent prices have decreased from the previous year. Housing purchase prices have increased 3.2%, but an above-average median household income means the market should be affordable for many residents.

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2. Waterloo

Waterloo is one of the best places to live in Iowa near Cedar Falls. It has a bustling art scene with several museums to explore. Waterloo’s location on the Cedar River makes a beautiful backdrop for attractions like the RiverLoop Amphitheatre and more than 100 miles of trails.

Population: 66,562
Median Household Income: $49,430
Cost of Living: 82%
Median Rent Price: $800
Home Price-to-Income Ratio: 2.74
Average Property Tax: 1.75%

Housing Affordability: Waterloo’s home price-to-income ratio is lower than the state average, making it an inviting place for first-time homebuyers. Rent is also affordable, but has risen year-over-year.

Image Credit: DenisTangneyJr/istockphoto.

3. Davenport

Davenport is an affordable area that has become increasingly popular and is the largest city in the Quad Cities — a region of four cities across both Iowa and Illinois. You’ll find plenty of entertainment and breweries in Davenport, along with one of the nation’s largest St. Patrick’s Day parades.

Population: 100,486
Median Household Income: $56,315
Cost of Living: 85% of U.S. average
Median Rent Price: $950
Home Price-to-Income Ratio: 3.37
Average Property Tax: 1.74%

Housing Affordability: The average monthly rent price is down slightly from the year before. Home values, however, are up 2.2% year-over-year. Paired with a slightly lower median income, that makes Davenport’s home-to-price income ratio just over the state average.

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4. Cedar Rapids

Cedar Rapids is the second largest city in Iowa and one of the best places to live for a more urban feel. It has a strong economy with many manufacturing companies as well as multiple Fortune 500 companies. The city’s prime location on the Cedar River makes it a beautiful place to live as well.

Population: 136,429
Median Household Income: $63,170
Cost of Living: 85% of U.S. average
Median Rent Price: $950
Home Price-to-Income Ratio: 2.91
Average Property Tax: 1.94%

Housing Affordability: Linn County property taxes are higher at 1.94% than the state average of 1.5% Rent prices are also on the rise. The median rent price is warming, with a slight increase from the previous year.

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5. Sioux City

Sioux City is in northwestern Iowa and has a low cost of living. The city is steeped in natural history and includes hands-on attractions like a fossil dig site replica, the LaunchPAD Children’s Museum, and the Sergeant Floyd River Museum.

Population: 85,497
Median Household Income: $59,435
Cost of Living: 88% of U.S. average
Median Rent Price: $995
Home Price-to-Income Ratio: 3.03
Average Property Tax: 1.85%

Housing Affordability: Sioux City’s rental market is steady, with an average monthly price unchanged from last year. The home price-to-income ratio is also lower than the state average, making it an extremely affordable place to live.

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Best Places to Live in Iowa for Families

Looking for the best places to live in Iowa for families? We’ve picked five affordable options across the state.

1. Waukee

A suburb of Des Moines, Waukee is one of the top spots for families in the state. It’s got family favorites like a movie theater and bowling alley, as well as a robust parks system for outdoor play time.

Population: 29,167
Median Household Income: $101,138
Cost of Living: 88% of U.S. average
Median Rent Price: $1,729
Home Price-to-Income Ratio: 3.33
Average Property Tax: 1.73%

Housing Affordability: The median home price in Waukee is above the state’s average, but income is also significantly higher. Similarly, monthly rent averages saw a slight annual increase.

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2. Grimes

Also near Des Moines, Grimes is perfect for families who love to experience unique activities together. It has arcades, indoor rock climbing, and a family-friendly raceway. Parents also appreciate the town’s well-rated public school system.

Population: 16,295
Median Household Income: $90,456
Cost of Living: 89% of U.S. average
Median Rent Price: $1,735
Home Price-to-Income Ratio: 3.65
Average Property Tax: 2.1%

Housing Affordability: Grimes is slightly less affordable for homebuyers compared to other areas because of an above average property tax and home price-to-income ratio. Renters, however, can enjoy a big dip in average monthly prices, which have dropped significantly since last year.

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3. West Des Moines

Families will find plenty to do in West Des Moines, just beyond the city center. From parks to shopping to the Blank Park Zoo, kids of all ages can enjoy the surrounding area. Plus, it takes just 15 minutes to commute to downtown Des Moines.

Population: 70,741
Median Household Income: $76,564
Cost of Living: 88% of U.S. average
Median Rent Price: $1,400
Home Price-to-Income Ratio: 3.84
Average Property Tax: 1.7%

Housing Affordability: Rent prices are on the decline in West Des Moines, making it an affordable option for families on the hunt for the best place to live. For those ready to buy, the home price-to-income ratio is slightly over half a point higher than the Iowa average.

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4. North Liberty

North Liberty is a suburban community located less than 20 minutes outside of Iowa City. The town’s Centennial Park hosts a major Blues and BBQ festival each summer and there’s also an active outdoors scene in the winter time. The family can enjoy seasonal activities like ice fishing, skating, and sculpture walks.

Population: 21,399
Median Household Income: $96,351
Cost of Living: 88% of U.S. average
Median Rent Price: $1,375
Home Price-to-Income Ratio: 2.99
Average Property Tax: 1.83%

Housing Affordability: The average home value in North Liberty is up 4.1% year over year, but the home price-to-income ratio is still lower than the rest of the state. The rental market is competitive here, with a notable increase over the last year.

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5. Ames

Located 30 miles north of Des Moines, Ames offers plenty of attractions for families to discover. Reiman Gardens is a stunning botanical garden worth exploring and you’ll also find sports-centric activities like golf and aquatics. You can also check out college football games at Iowa State University’s Jack Trice Stadium.

Population: 66,950
Median Household Income: $54,339
Cost of Living: 81% of U.S. average
Median Rent Price: $1,050
Home Price-to-Income Ratio: 4.46
Average Property Tax: 1.76%

Housing Affordability: The home price-to-income ratio is significantly higher than the rest of Iowa, but the average home value here is still more than $100,000 below the U.S. national average. It could be helpful to browse tips on how to qualify for a mortgage. Rental prices are more modest with just a minor increase from last year.

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Best Places to Live in Iowa for Young Adults

Young adults have plenty of places to choose from across Iowa, balancing both work and play. Here are our top picks.

1. Des Moines

Young adults looking for strong job opportunities will appreciate the low unemployment rate in Des Moines, with a significant proportion of jobs in the healthcare and financial sectors. The city has a thriving brewery scene as well as a huge network of hiking, jogging, and biking trails.

Population: 211,034
Median Household Income: $58,444
Cost of Living: 94% of U.S. average
Median Rent Price: $1,095
Home Price-to-Income Ratio: 3.33
Average Property Tax: 2.1%

Housing Affordability: The home price-to-income ratio in Des Moines is just slightly above the state ratio, although house prices have jumped 4.6% over the last year. The average rent price has edged up just slightly year over year.

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2. Coralville

Just 15 minutes outside of Iowa City and 20 minutes from Cedar Rapids, Coralville has an exciting social scene with plenty of bars and restaurants (including two escape rooms). It’s a busy suburban area that gives you a little breathing room from the city without feeling isolated.

Population: 23,125
Median Household Income: $67,474
Cost of Living: 85% of U.S. average
Median Rent Price: $1,219
Home Price-to-Income Ratio: 3.48
Average Property Tax: 1.83%

Housing Affordability: Coralville is growing in popularity, with home values up 4.7%. Additionally, property taxes are about 0.3% higher than the state average. Rent prices, on the other hand, are down from the previous year. If you are shopping for your first home, make sure you understand the difference between mortgage prequalification and preapproval.

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3. Tiffin

Young professionals who want a charming small town feel should consider Tiffin. It’s just outside of Cedar Rapids. F.W. Kent County Park, nearby, is a prime spot for outdoor recreation enthusiasts.

Population: 5,808
Median Household Income: $85,826
Cost of Living: 89.6% of U.S. average
Median Rent Price: $1,737
Home Price-to-Income Ratio: 3.57
Average Property Tax: 1.83%

Housing Affordability: Housing prices average just over $300,000 in Tiffin, which makes for a slightly above average home price-to-income ratio. Rent prices, however, cooled slightly over the last year.

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4. Iowa City

Iowa City is a vibrant college town with plenty of sporting events to attend at the University of Iowa. It is also known as the birthplace of the Iowa Writer’s Workshop and the city has been designated a UNESCO City of Literature. There’s plenty to explore along the Iowa River and the Devonian Fossil Gorge. Plus, the median age is 26.

Population: 75,233
Median Household Income: $51,925
Cost of Living: 89% of U.S. average
Median Rent Price: $1,399
Home Price-to-Income Ratio: 5.4
Average Property Tax: 1.83%

Housing Affordability: Iowa City has quite a high price-to-income ratio for homes. But the average home still shouldn’t require a jumbo mortgage loan — the average home value here is around $279,000. Additionally, monthly prices are down for young adults who want to rent instead of buy.

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5. Clive

Clive is located just outside of Des Moines. Young adults will enjoy the nightlife in local breweries and bars. You’ll also find outlets for your hobbies, thanks to attractions for swimming, art, and more.

Population: 18,908
Median Household Income: $114,905
Cost of Living: 86.6% of U.S. average
Median Rent Price: $1,575
Home Price-to-Income Ratio: 3.46
Average Property Tax: 2.1%

Housing Affordability: The growth in home values is slowing here, with prices only increasing 2.8% year-over year. The rental market saw a big jump over the last year.

Image Credit: dangarneau/istockphoto.

Best Places to Live in Iowa for Retirees

Looking for the best places to live in Iowa for seniors? Here are five affordable picks to consider.

1. Clear Lake

Clear Lake provides retirees with the small town charm of lake living combined with a convenient location between Des Moines and Minneapolis. The cost of living is 18% less than the national average, making it an ideal place for seniors on a fixed income.

Population: 7,529
Median Household Income: $61,036
Cost of Living: 82% of U.S. average
Median Rent Price: $995
Home Price-to-Income Ratio: 5.14
Average Property Tax: 1.43%

Housing Affordability: House prices are on the rise in Clear Lake. For retirees who want the convenience of renting, however, the average price is on a downward trend. There are three retirement communities in this small town, as well as assisted living facilities.

Image Credit: Clear Lake water tower and shoreline. by FortepanIowa (CC BY-SA).

2. Marion

Seniors account for 22% of the adult population in Marion, making it a great place to retire. Plus, the city organizes plenty of activities for this age group, including games, fitness, and dancing.

Population: 41,864
Median Household Income: $75,927
Cost of Living: 83% of U.S. average
Median Rent Price: $900
Home Price-to-Income Ratio: 3.29
Average Property Tax: 1.94%

Housing Affordability: The home price-to-income ratio in Marion is on par with the rest of the state. It may be slightly more expensive for seniors to rent, however, with rental prices up quite a bit from the year before.

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3. Decorah

Decorah is the epitome of small town charm, with plenty of historical and natural attractions to enjoy. The town is ringed by parks and has two country clubs. It is also home to the Northeast Iowa Area Agency on Aging, which provides services such as counseling, health programs, and more.

Population: 7,680
Median Household Income: $55,480
Cost of Living: 83% of U.S. average
Median Rent Price: $1,500
Home Price-to-Income Ratio: 4.99
Average Property Tax: 1.29%

Housing Affordability: Property taxes are well below the Iowa average, making it affordable for retirees who already own their homes to age in place. Rent, however, jumped year over year.

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4. Keokuk

This Mississippi River town is nestled close to the Illinois border and within two hours by car from Iowa City and Cedar Rapids, which means both entertainment and major healthcare centers are within reach.

Population: 9,904
Median Household Income: $44,770
Cost of Living: 72.1% of U.S. average
Median Rent Price: $639
Home Price-to-Income Ratio: 1.74
Average Property Tax: 1.57%

Housing Affordability: Home prices are extremely low in Keokuk, especially compared to income. The median rent, though up from last year, is one of the lowest on our list.

Image Credit: EJ_Rodriquez/istockphoto.

5. Windsor Heights

For retirees who want to stay in the Des Moines area, Windsor Heights is a great suburban option.

Population: 5,109
Median Household Income: $79,073
Cost of Living: 86.6% of U.S. average
Median Rent Price: $1,350
Home Price-to-Income Ratio: 3.34
Average Property Tax: 2.10%

Housing Affordability: The average home value here is around $264,000 which is well below the U.S. national average. Monthly rent prices are up from the previous year.

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Best Places to Live in Iowa Near the Water

Iowa is full of majestic rivers and lakes. Here are the top spots for moving closer to the water, either as your full-time home or as an affordable weekend getaway.

1. Burlington

Located on the banks of the Mississippi River, Burlington is an affordable town with an accessible waterfront. Take in sweeping river views from the bluffs of Mosquito Park, or jump in a kayak or canoe from one of the many public boat ramps.

Population: 23,611
Median Household Income: $48,013
Cost of Living: 87.4% of U.S. average
Median Rent Price: $800
Home Price-to-Income Ratio: 2.41
Average Property Tax: 1.670%

Housing Affordability: Burlington is an extremely affordable community with a low home price-to-income ratio and below average property tax rates. (Are you in the market for a home here? Consider going through the mortgage preapproval process.) Median rent saw a moderate increase from last year.

Image Credit: EJ_Rodriquez/istockphoto.

2. Spirit Lake

The town of Spirit Lake sits on the western side of East Okoboji Lake in the Great Lakes region. Pikes Point State Park has a popular swim beach while Preservation Plaza hosts frequent concerts.

Population: 5,516
Median Household Income: $56,490
Cost of Living: 90% of U.S. average
Median Rent Price: $1,075
Home Price-to-Income Ratio: 6.37
Average Property Tax: 0.970%

Housing Affordability: Housing prices are on the rise in Spirit Lake. Rent prices are also experiencing an upward trend.

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3. Le Claire

Le Claire is located on the Mississippi River. Not only will water lovers find plenty to do here, but history buffs will be just as happy. Le Claire is home to Antique Archaeology, the store featured on the History Channel’s American Pickers show.

Population: 4,614
Median Household Income: $72,490
Cost of Living: 82.9% of U.S. average
Median Rent Price: $2,688
Home Price-to-Income Ratio: 4.5
Average Property Tax: 1.74%

Housing Affordability: Although Le Claire has a high price-to-income ratio, property taxes are just slightly above average compared to the rest of Iowa. Rent seems expensive, but it’s on a downward trend since last year.

Image Credit: EJ_Rodriquez/istockphoto.

4. Waterloo

Explore the Cedar River in Waterloo both on land and water. There are calm areas for canoeing and kayaking, or you can opt for a power boat to get around.

Population: 66,562
Median Household Income: $49,430
Cost of Living: 86.1% of U.S. average
Median Rent Price: $800
Home Price-to-Income Ratio: 2.74
Average Property Tax: 1.750%

Housing Affordability: Whether you’re looking for a permanent move or a vacation home, Waterloo has a low home price-to-income ratio. You could even enjoy your own rental property, which has a low monthly average.

Image Credit: izzat/istockphoto.

5. Iowa Falls

Iowa Falls sits on the Iowa River with plenty of areas to explore by foot, car, canoe, or kayak. One of the city’s best river vantage points is from the historic swinging bridge in Assembly Park.

Population: 5,072
Median Household Income: $55,339
Cost of Living: 74.1% of U.S. average
Median Rent Price: $750
Home Price-to-Income Ratio: 2.22
Average Property Tax: 1.5%

Housing Affordability: Property taxes in Iowa Falls are right in line with the state average and the home price-to-income ratio is quite low. Residents have also enjoyed steady rent rates as well.

Image Credit: Wirestock/istockphoto.

The Takeaway

There are plenty of affordable options when searching for the best place to live in Iowa, including suburban areas close to busy cities and pretty river towns. Not certain Iowa is the spot? Explore a guide to the cost of living by state for more options.

This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.

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