Best Affordable Places to Live in Iowa in 2024

Best Places to Live in Iowa

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.

💡 Quick Tip: SoFi’s Lock and Look ⁺ feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.

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

Photo credit: iStock/Jacob Boomsma

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.

2. Waterloo

Photo credit: iStock/DenisTangneyJr

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.

3. Davenport

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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.

4. Cedar Rapids

Photo credit: iStock/Aaron Yoder

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.

5. Sioux City

Photo credit: iStock/BergmannD

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.

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

Photo credit: iStock/Jacob Boomsma

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.

2. Grimes

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.

3. West Des Moines

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.

4. North Liberty

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.

5. Ames

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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.

Recommended: Different Types of Mortgage Loans

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

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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.

2. Coralville

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.

3. Tiffin

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.

4. Iowa City

Photo credit: iStock/DenisTangneyJr

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.

5. Clive

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.

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

Photo credit: Flickr/dmblue444 , Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic

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.

2. Marion

Photo credit: Wikimedia Commons/
James.Heires , Creative Commons Attribution-ShareAlike 4.0 International

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.

3. Decorah

Photo credit: iStock/BackyardProduction

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.

4. Keokuk

Photo credit: Flickr/Jimmy Emerson, DVM , Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic

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.

5. Windsor Heights

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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.

Recommended: Home Loan Help Center

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

Photo credit: iStock/EJ_Rodriquez

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.

2. Spirit Lake

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

3. Le Claire

Photo credit: iStock/RiverNorthPhotography

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.

4. Waterloo

Photo credit: iStock/DenisTangneyJr

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.

5. Iowa Falls

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.

💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.

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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.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help. SoFi Mortgages: simple, smart, and so affordable.

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FAQ

Where is the cheapest suburban place to live in Iowa?

There are many affordable suburbs to enjoy in Iowa. Urbandale is one of the fastest growing areas and is conveniently located just outside of Des Moines.

Where is the nicest place to live in Iowa?

It depends what you’re looking for. There are plenty of bustling urban areas, like Des Moines and Cedar Rapids. But you may also enjoy a charming small town such as Tiffin, Clear Lake, or Decorah.

How much money do you need to live comfortably in Iowa?

The amount of money you need to live comfortably in Iowa varies based on where you live and work. In Des Moines, in a family with two working adults and two children, each adult would need to earn an average of $37 per hour, according to the Massachusetts Institute of Technology Living Wage Calculator.

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