Cost of Living in Iowa

(Last Updated – September 3,2025)

If you’re looking for your own field of dreams in the heartland, Iowa is one of the most affordable places to live in the U.S. The average cost of living in Iowa is $47,833.

While you might love how affordable it is, the Hawkeye State might also win your heart with its easy way of life, low crime rate, vibrant culture, and good schools. Here’s a complete breakdown of how much living in Iowa will cost using the most recent data from Missouri Economic Research and Information Center (MERIC), the Bureau of Economic Analysis, and the U.S. Census.

What’s the Average Cost of Living in Iowa?

Good news for Iowans: The state has the second lowest cost of living among Midwestern states, beating out neighboring states like Minnesota, Illinois, and Nebraska. It’s also the sixth lowest cost of living in the U.S., according to MERIC data collected in 2024.

As we mentioned, the average cost of living is $47,833 per person, according to the U.S. Bureau of Economic Analysis Cost of Living Index. That translates to average monthly expenses of $3,986 per person.

Here’s what that looks like when broken down by spending category.

Housing Costs in Iowa

Relatively low housing costs make Iowa one of the best affordable places in the U.S. Iowa has 1,449,340 housing units and a 71.5% ownership rate, according to data from the U.S. Census Bureau. And as of August 2025, the average home price in Iowa is $233,008, per data compiled by Zillow.

Annual housing costs in Iowa average $7,743. When broken down by housing type and size, the numbers look like this:

•   Median monthly mortgage home loan cost: $1,494

•   Median studio rent: $851

•   Median one-bedroom rent: $741

•   Median two-bedroom rent: $959

•   Median three-bedroom rent: $1,166

•   Median four-bedroom rent: $1,274

•   Median five-bedroom rent: $1,153

•   Median gross rent: $949

These are the average home prices in some of the most popular cities in Iowa, according to Zillow’s August 2025 data.

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Utility Costs in Iowa

Monthly utility costs in Iowa are generally lower than most other states and can be broken down as follows:

Food & Beverage

Food costs in Iowa can take a bite out of your budget. Unfortunately, they’re slightly higher here than in neighboring Minnesota, Nebraska, and South Dakota. According to the Bureau of Economic Analysis, Iowa’s per-capita annual cost of food and beverages is around $4,067. This breaks down to roughly $339 per month for an individual, or $1,355 per month for a family of four. Keep in mind that figure is just a state average. Costs will vary depending on where you are within Iowa.

The Council for Community and Economic Research tracks grocery costs across the country. Let’s take a look at the comparative grocery costs in Iowa for 2024, from lowest to highest. Note that the number 100 represents the national average.

Transportation

Whether you’re planning a weekend trip to Pikes Peak State Park or hitting the Great River Road National Scenic Byway, there’s no shortage of scenic drives in the Hawkeye State. Fortunately, fuel costs are generally in line with what you’d pay in nearby states, though the amount you pay will vary according to the type of car you drive and the size of your family.

Here are estimated monthly costs per MIT’s Living Wage Calculator.

Looking to slash your transportation costs? Iowa has a statewide public transit system, which includes service to rural areas of the state.

Health Care in Iowa

The average Iowan pays around $8,224 in health care costs each year, according to the Bureau of Economic Analysis Personal Consumption Expenditures report. This is lower than the national average of $9,130. However, the amount you’ll pay will depend on a number of factors, including your age, medical needs, and the type of health insurance plan you have.

Child Care

As with most states, the amount you pay for child care in Iowa will depend largely on the type of care and your child’s age. For instance, you’ll likely pay more for center-based toddler care than you will for home-based family child care.

Let’s take a look at average childcare costs in Iowa, per CostofChildCare.org.

If you need help finding child care near you, you may want to consider using Iowa Child Care Connect, an online tool the state launched in 2024.

Taxes

State tax collections per capita in Iowa are $4,034, which ranks 28th in the nation -– solidly in the middle of the pack.

The state of Iowa implemented a flat 3.8% tax on all income levels for 2025, replacing a tiered system. It’s one of the lowest in the nation.

Other tax rates in Iowa are as follows:

•  Effective property tax rate: 1.23%

•  Sales tax for combined state and local taxes: 6.94%

•  Corporate tax rate of 7.1%

Here’s how Iowa stacks up against nearby states.

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Miscellaneous Costs

Once you’ve covered your basic living expenses, you hopefully have enough left over in your budget to enjoy some everyday pleasures. Fortunately, some of Iowa’s biggest attractions are either free or reasonably priced. Take, for example, the “Field of Dreams” Movie Site, which lets you experience the baseball field and farmhouse made famous in the movie for a $20 suggested donation.

Here are some other local favorites worthy of a spot in your entertainment budget:

•  Maquoketa Caves State Park: $0

•  National Mississippi River Museum & Aquarium: $24.95 per adult

•  Greater Des Moines Botanical Garden: $12 per adult

•  All Iowa Lawn Tennis Club: $75 for two players, or $100 for four players for one-hour reservation

How Much Money Do You Need to Live Comfortably in Iowa?

We all have different wants and needs, so it’s hard to say exactly how much money you might require to maintain a lifestyle that’s comfortable for you in Iowa. But in Iowa, the odds are in your favor. The state shines when you compare its affordability to the cost of living in other states. Per MIT’s Living Wage Calculator, a single childless adult would need to make $40,540 a year before taxes to cover expenses in Iowa. U.S. News & World Report’s Best States ranking named Iowa as the most affordable state in 2025. And MERIC’s cost of living data also ranked Iowa as one of the top affordable states, at #10.

Explore the best affordable places in every state.

What City Has the Lowest Cost of Living in Iowa?

These three cities in Iowa all have a low cost of living, according to the Council for Community and Economic Research Cost of Living Index for 2024:

Des Moines

Nearly every city in Iowa can be considered affordable compared to most other states, which can be a good thing if you’re buying your first home. But certain areas are more budget-friendly than others.

Here are three of the lowest-cost cities in the state, according to the Council for Community and Economic Research’s 2024 Cost of Living Index.

Waterloo-Cedar Falls

There’s a lot for homebuyers to like about the Waterloo-Cedar Falls metro area. More than just the Black Hawk County Seat, it’s also a hotbed for jobs in manufacturing, technology, health care, education, and retail. And its varied landscape of prairie, wetland, and natural forest means there’s plenty of outdoor adventures to be enjoyed outside of the daily grind.

Burlington

Outsiders may know Burlington as the home of Snake Alley, a 275-foot-long street so curvaceous, Ripley’s Believe It or Not nicknamed it “Unbelievably Crooked.” But those in the know are also wise to the small town’s charm, much-lower-than-average housing prices, and enviable location along the Mississippi River.

Helpful Resources for Future Iowa Residents