Cheapest Places to Live in Iowa

Iowa, with its rolling prairies and vibrant agricultural communities, offers a peaceful and affordable living environment. Landmarks such as the Field of Dreams Movie Site, the Iowa State Capitol, and Pikes Peak State Park highlight the state's unique charm. The state's economy is largely driven by agriculture, manufacturing, and renewable energy sectors. Iowa's tax structure includes moderate income and property taxes, which contribute to its overall affordability. Despite recent inflation and rising food costs, Iowa remains one of the more affordable states in the Midwest, especially in its smaller towns and rural areas. The combination of a strong agricultural base and manageable living costs makes Iowa an attractive place for those seeking affordability and a high quality of life.

Affordable living in Iowa can often be found in smaller towns and suburban areas where housing costs and everyday expenses are lower. These regions provide a more manageable cost of living, which is essential for maintaining financial stability. Affordability is a crucial factor in livability, as it allows residents to enjoy a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Iowa include lower housing demand in less populated areas, supportive local economic policies, and efficient public services. Utilizing C2ER's cost of living data helps to identify these affordable regions, ensuring that potential residents can make informed decisions. In a state known for its community spirit and economic opportunities, finding affordable living options enhances the overall living experience.

Oelwein Population: 5,896 14% cheaper than Iowa average

Med. Home Value: $87,800 Med. Rent: $641 Med. Household Inc.: $38,320

With a cost of living index that is 14% cheaper than the state average, Oelwein is the cheapest place to live in Iowa. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, Oelwein provides an inviting and cost-effective environment to call home.

Centerville Population: 5,433 11% cheaper than Iowa average

Med. Home Value: $73,000 Med. Rent: $637 Med. Household Inc.: $32,689

The second most affordable city in Iowa is Centerville and stands out for its cost-effective lifestyle. With an overall cost of living that is 11% cheaper than the Iowa average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.

Osceola Population: 5,160 9% cheaper than Iowa average

Med. Home Value: $90,600 Med. Rent: $582 Med. Household Inc.: $50,696

Osceola lands in the #3 spot for the cheapest cities to live in Iowa, with a cost of living that is 9% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.

Waterloo Population: 67,671 8% cheaper than Iowa average

Med. Home Value: $117,000 Med. Rent: $776 Med. Household Inc.: $46,942

The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Waterloo offers a picturesque and affordable living environment, with a cost of living that is 8% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .

Red Oak Population: 5,323 8% cheaper than Iowa average

Med. Home Value: $77,400 Med. Rent: $647 Med. Household Inc.: $50,524

For those wanting to live well on a budget, Red Oak is ideal, with a cost of living that is 8% cheaper than the state average. Reasonable housing prices (compared to the Iowa average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.

Creston Population: 7,754 7% cheaper than Iowa average

Med. Home Value: $101,700 Med. Rent: $600 Med. Household Inc.: $44,631

Creston comes in at #6 on our list of the cheapest cities in Iowa and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 7% cheaper than Iowa. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.

Oskaloosa Population: 11,727 7% cheaper than Iowa average

Med. Home Value: $93,000 Med. Rent: $711 Med. Household Inc.: $49,856

With its cost-effective lifestyle, Oskaloosa is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.

Independence Population: 6,085 7% cheaper than Iowa average

Med. Home Value: $129,900 Med. Rent: $744 Med. Household Inc.: $58,631

A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. Independence fits that mold and has a cost of living that is 7% cheaper than Iowa.

Knoxville Population: 7,154 7% cheaper than Iowa average

Med. Home Value: $97,300 Med. Rent: $680 Med. Household Inc.: $50,629

Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Knoxville is one of the most affordable cities in Iowa, and has a cost of living that is 7% cheaper than the state average.

Maquoketa Population: 5,990 6% cheaper than Iowa average

Med. Home Value: $91,100 Med. Rent: $569 Med. Household Inc.: $48,164

With a cost of living that is 6% cheaper than Iowa, Maquoketa comes in at #10 on our list of the cheapest places to live in Iowa. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Iowa

Rank	Location	Population	COL Index	Med. Home Value	Med. Household Inc.
1	Oelwein	5,896	77	$87,800	$38,320
2	Centerville	5,433	80	$73,000	$32,689
3	Osceola	5,160	82	$90,600	$50,696
4	Waterloo	67,671	82	$117,000	$46,942
5	Red Oak	5,323	83	$77,400	$50,524
6	Creston	7,754	83	$101,700	$44,631
7	Oskaloosa	11,727	83	$93,000	$49,856
8	Independence	6,085	83	$129,900	$58,631
9	Knoxville	7,154	83	$97,300	$50,629
10	Maquoketa	5,990	84	$91,100	$48,164
11	Clarinda	5,371	84	$93,000	$48,309
12	Estherville	5,729	84	$87,000	$53,542
13	Keokuk	10,225	84	$75,400	$43,304
14	Ottumwa	24,505	85	$75,800	$42,418
15	Charles City	7,351	85	$93,200	$37,301
16	Sheldon	5,178	85	$142,500	$54,931
17	Denison	8,319	86	$99,500	$53,808
18	Clinton	25,290	86	$100,800	$46,066
19	Fort Madison	10,407	86	$81,200	$44,334
20	Sioux City	82,535	86	$123,100	$57,750
21	Spencer	11,038	86	$136,400	$45,224
22	Perry	7,660	87	$84,800	$47,802
23	Newton	15,160	87	$123,200	$48,417
24	Marshalltown	26,957	87	$93,300	$54,778
25	Fort Dodge	24,168	87	$99,200	$44,290
26	Webster City	7,699	87	$92,600	$54,531
27	Atlantic	6,600	88	$124,800	$46,625
28	Manchester	5,011	88	$113,300	$49,729
29	Burlington	24,858	88	$94,000	$46,707
30	Iowa Falls	5,067	88	$93,400	$45,331
31	Waverly	10,172	89	$175,600	$65,701
32	Mason City	27,064	89	$112,500	$53,406
33	Fairfield	10,327	89	$111,800	$42,862
34	Decorah	7,615	89	$192,700	$55,920
35	Muscatine	23,661	90	$112,500	$53,768
36	Council Bluffs	62,376	90	$122,400	$53,449
37	Boone	12,470	90	$114,600	$60,854
38	Mount Pleasant	8,574	90	$123,200	$51,615
39	Grinnell	9,069	90	$150,700	$50,668
40	Anamosa	5,484	90	$124,100	$42,122
41	Des Moines	215,408	90	$141,300	$145,591
42	Des Moines	215,408	90	$141,300	$56,297
43	Des Moines	215,408	90	$141,300	$70,557
44	Des Moines	215,408	90	$141,300	$49,755
45	Des Moines	215,408	90	$141,300	$29,094
46	Des Moines	215,408	90	$141,300	$90,268
47	Des Moines	215,408	90	$141,300	$64,784
48	Des Moines	215,408	90	$141,300	$42,059
49	Des Moines	215,408	90	$141,300	$73,304
50	Des Moines	215,408	90	$141,300	$48,500

Methodology

To formulate the list of the cheapest places to live in Iowa, AreaVibes utilized comprehensive data from the Council for Community and Economic Research (C2ER) cost of living index. The report is released annually and offers a detailed comparison of living expenses across various urban areas. The data is meticulously gathered by over 300 independent researchers, ensuring a high level of accuracy and reliability. The C2ER index encompasses more than 60 goods and services, categorized into six essential areas that significantly impact the cost of living. These categories and their respective weightings in the index are as follows: goods and services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%), and utilities (10%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.