We bet you’re smart.
Why else would you be looking for the cheapest places to live in Iowa?
Well, we think you’re smart. And to help you out, we used Saturday Night Science to pinpoint the exact locations of the most affordable places to live in Iowa. We looked through the Census data for housing costs and the cost of living for every place in the state.
More affordable places include suburbs of bigger cities like Des Moines. That said, you’ll probably have a cornfield in your backyard in most of these places. But at least Ledges State Park is just a short drive away.
Table Of Contents: Top Ten | Methodology | Table | FAQs | Summary
The 10 most affordable places to live in Iowa
Ask any Iowan, and they will say, hands down, that their corner of the world is the best. Heck, there’s a reason The Hawkeye State is the 30th most populous in the country.
What’s the most affordable place to live in Iowa? The most affordable place to live in Iowa is Oelwein according to the most recent Census data on incomes, rent, and home prices.
Check out some more reading about Iowa and the cheapest places in the country:
The 10 Cheapest Places To Live In Iowa For 2024
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Population: 5,934
Overall Cost Of Living Index: 75
Median Income: $41,629
Median Home Price: $97,930
Median Rent: $790
Ranked as the most affordable city in Iowa, Oelwein sits at the intersection of State Highways 3 and 150 within central Fayette County.
The city’s overall cost of living index of 75 is notably lower than the state and national average. Its $97,930 average home price, which is the third lowest in Iowa, drives the low cost of living. Home prices typically account for the biggest discrepancy in living costs between cities in the same state.
More on Oelwein: Data | Crime | Cost Of Living | Real Estate
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Population: 5,393
Overall Cost Of Living Index: 78
Median Income: $42,064
Median Home Price: $73,340
Median Rent: $736
Centerville, centered in the center of Appanoose County, certainly excels as a cheap city in Iowa.
Phew.
It has an overall cost of living that is 10.3% lower than the state average. That saves more money for fun things to do like a weekend trip to Boise or camping at the Swinging Bridge Campground.
More on Centerville: Data | Crime | Cost Of Living | Real Estate
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Population: 11,492
Overall Cost Of Living Index: 79
Median Income: $57,949
Median Home Price: $162,462
Median Rent: $815
Oskaloosa offers one of the most affordable lifestyles in Iowa. With a median home value of $162,462 and median rent of $815, the cost of living in Oskaloosa is well below the national average.
Oskaloosa’s low unemployment rate of just 4.34% and median income of $57,949 make it a stable and secure place to live.
More on Oskaloosa: Data | Crime | Cost Of Living | Real Estate
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Population: 5,455
Overall Cost Of Living Index: 79
Median Income: $55,208
Median Home Price: $163,656
Median Rent: $630
If you’re looking for a place where you don’t have to hand over whole paycheck just to get the mortgage paid, Osceola is the place for you. With a median home price of $163,656 and a median income of $55,208, Osceola has the 36th best home price to income ratio in Iowa. Only a slightly less favorable market for renters keeps Osceola from a higher spot on this list. But hey, if you’re feeling lucky about living in the fourth cheapest place in Iowa, head to the local Lakeside Casino and your luck might just continue.
Osceola is about 45 minutes south of Des Moines.
More on Osceola: Data | Crime | Cost Of Living | Real Estate
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Population: 6,106
Overall Cost Of Living Index: 80
Median Income: $63,042
Median Home Price: $192,496
Median Rent: $800
You’ll find financial independence in Independence, the fifth cheapest place to live in Iowa for 2024.
Located in Buchanan County, Independence is a small town with inexpensive attractions such as Wapsipinicon River nearby. That allows residents to save more of their $63,042 median income for sweet corn and loose meat sandwiches.
More on Independence: Data | Crime | Cost Of Living | Real Estate
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Population: 5,563
Overall Cost Of Living Index: 80
Median Income: $50,984
Median Home Price: $106,242
Median Rent: $720
It probably doesn’t mean much these days to be the hometown of Johnny Carson. But from the 1960s to the 1990s, the host of the Tonight Show was one of the most recognizable people in America. That’s a pretty big claim to fame for Red Oak, Iowa, a town of just 5,563 residents.
These days, Red Oak has other things going for it besides a famous native son. It ranks as the number 6 most affordable spot in Iowa.
Thanks in large part to cheap housing, the cost of living in Red Oak comes in at about 80% the norm for the U.S. The median home value in town is the sixth most affordable in the state, with a figure of $106,242. Rent costs are similarly under control, with a median value of $720 per month.
In terms of other economic indicators, the median income in town sits at $50,984, while the unemployment rate runs a at a level of 7.47%.
Located in an agricultural region, Red Oak offers a rural lifestyle. For big city excitement, your best bet would be Omaha, Nebraska, located about an hour to the northwest.
More on Red Oak: Data | Crime | Cost Of Living | Real Estate
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Population: 67,256
Overall Cost Of Living Index: 81
Median Income: $54,104
Median Home Price: $135,521
Median Rent: $865
In Waterloo, finding a good deal on a place to live is not a battle. The town ranks as the seventh most affordable in Iowa. With median home values at $135,521 and a median income of $54,104, Waterloo presents an enviable home price-to-income ratio of 2.50.
With that extra income, you can travel to the Cedar Rapids Freedom Festival or the Quad City Balloon Festival.
More on Waterloo: Data | Crime | Cost Of Living | Real Estate
Commenting on the review left by the Cedar Falls person. Your people- “Your” people must be into drugs,too, or my people wouldn’t be bothering yours. My family lives in both communities and we have never been shot at or anything like that.
My favorite place is home.
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Population: 9,868
Overall Cost Of Living Index: 81
Median Income: $47,571
Median Home Price: $77,849
Median Rent: $768
Keokuk, perched on Iowa’s extreme southeast tip, has a cheap real estate market featuring a $77,849 median income. It ranks as the eighth most inexpensive in Iowa.
The city’s position at the Des Moines River and the Mississippi River intersection offers plenty of free or low-cost things, like fishing, hiking, or swimming. Its overall cost of living index of 81 is 6 points better than the state average.
More on Keokuk: Data | Crime | Cost Of Living | Real Estate
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Population: 8,316
Overall Cost Of Living Index: 81
Median Income: $57,744
Median Home Price: $162,813
Median Rent: $775
Coming in as the absolute cheapest place to live in Iowa for 2024 is Denison. Denison might not have the cheapest homes on the market or lowest rent in the state, a combination of factors work together to make it the least expensive place in Iowa overall. Denison has the best-paid populace on this list, with a median income of $57,744, which, taken with Denison’s median home price of $162,813, means that the city’s residents pay the 30th least proportion of their income on homes in Iowa. And don’t worry that cheap = boring; Denison has plenty going on to keep you occupied on a budget.
Denison is located in West Central Iowa.
More on Denison: Data | Crime | Cost Of Living | Real Estate
Being a graduate from Denison Iowa #3 which said the Graduation Rate was 62% but your information is false.
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Population: 7,519
Overall Cost Of Living Index: 81
Median Income: $51,366
Median Home Price: $127,665
Median Rent: $706
Creston started life as a railroad junction. Even today, Amtrak’s California Zephyr passes through town as part of its regular service between Chicago and San Francisco. That means most people experience the town as a passing blur from a train window. But they are missing out. After all, Creston stands as one of the cheapest places to live in all of Iowa.
Rents in Creston are among the cheapest in the state, coming in at a median level of $706 per month. Buying a house is a good value as well. The median home value in the area stands at $127,665, the 13th most affordable figure in the state.
Generally speaking, the cost of living for the area sits at about 80% the national average. Most of that value comes from the cheap housing available. Turning to other stats, the median income is $51,366 and the unemployment rate is 4.54%.
Creston sits in a rural region. However, it’s not your stereotypical horizon of unbroken cornfields. There are a few sizable lakes nearby, offering the town’s 7,519 residents access to lots of outdoor activities. For instance, they an visit the nearby Green Valley State Park.
More on Creston: Data | Crime | Cost Of Living | Real Estate
Cheapest places to live in Iowa FAQs
The county in Iowa with the lowest cost of living is Decatur County. The average living wage in Decatur County is $84,148 according to MIT data. Decatur County has the lowest cost of living because it has relatively less expensive childcare and housing costs compared to Iowa as a whole. Childcare costs $11,870 a year in Decatur County for two children compared to the Iowa average of $15,077. Housing costs, defined as a blend of the average rent and average mortgage payment, are $8,580 per year in Decatur County compared to $9,843 on average in Iowa.
The cost of living in Iowa is 0.6% lower than the US average. According to MIT, the required living wage for a family of four with two working parents in Iowa is $89,241 vs the national average for a family of four with two working parents of $89,744. The median income of a Iowa household is $61,836.
The cheapest housing market in Iowa is Centerville. The average home value in Centerville is $73,000, the lowest in the state. The average home value in Iowa is $153,900, almost 2.1 times higher than Centerville.
Methodology: How we determined the most affordable places to live in the Hawkeye State for 2024
Determining affordability for places in Iowa boils down to how much it costs to live here.
You need to understand your costs relative to what people in the rest of the state are paying.
With that logic in mind, we derived several cost of living statistics from the latest Census American Community Survey 2018-2022 for Iowa using Saturday Night Science. We indexed the cost of living statistics across the following categories:
- Housing
- Transportation
- Services
- Groceries
- Healthcare
- Utilities
These are then weighted together to produce an overall cost of living index where 100 is the United States average. Anything below 100 is relatively affordable. Anything over 100 is relatively expensive.
We applied the biggest weight to housing as it typically accounts for 25% or more of your budget. Additionally, housing costs are the highest variant cost across a state. We then compare these cost of living metrics for each place in Iowa to figure out which is the least expensive.
The “Cost of Living Index” allows you to rank all of the 83 places in Iowa that have more than 5,000 people from least expensive to most expensive. Any ties went to the larger city.
The place in Iowa with the lowest cost of living according to the data is Oelwein.
We updated this article for 2024. This report reflects our tenth time ranking the cheapest places to live in Iowa.
Iowa Affordabilility Summary
This is an accurate list of the most affordable places to live in Iowa for 2024, if you’re looking at the cost of living numbers in Iowa.
The cheapest cities in Iowa are Oelwein, Centerville, Oskaloosa, Osceola, Independence, Red Oak, Waterloo, Keokuk, Denison, and Creston.
Here’s a look at the most expensive cities in Iowa according to the data:
- Clive
- North Liberty
- Asbury
For more Iowa reading, check out:
- Best Places To Raise A Family In Iowa
- Best Places To Buy A House In Iowa
- Worst Places To Live In Iowa
Cheapest Places To Live In Iowa
| Rank | City | Population | Cost Of Living Index | Median Income | Home Prices | Rent |
|---|---|---|---|---|---|---|
| 1 | Oelwein | 5,934 | 75 | $41,629 | $97,930 | $790 |
| 2 | Centerville | 5,393 | 78 | $42,064 | $73,340 | $736 |
| 3 | Oskaloosa | 11,492 | 79 | $57,949 | $162,462 | $815 |
| 4 | Osceola | 5,455 | 79 | $55,208 | $163,656 | $630 |
| 5 | Independence | 6,106 | 80 | $63,042 | $192,496 | $800 |
| 6 | Red Oak | 5,563 | 80 | $50,984 | $106,242 | $720 |
| 7 | Waterloo | 67,256 | 81 | $54,104 | $135,521 | $865 |
| 8 | Keokuk | 9,868 | 81 | $47,571 | $77,849 | $768 |
| 9 | Denison | 8,316 | 81 | $57,744 | $162,813 | $775 |
| 10 | Creston | 7,519 | 81 | $51,366 | $127,665 | $706 |
| 11 | Cherokee | 5,154 | 81 | $51,651 | $136,850 | $614 |
| 12 | Knoxville | 7,523 | 82 | $57,318 | $180,777 | $784 |
| 13 | Clarinda | 5,371 | 82 | $51,413 | $116,188 | $639 |
| 14 | Fort Dodge | 24,850 | 83 | $59,452 | $126,549 | $749 |
| 15 | Clinton | 24,524 | 84 | $55,196 | $118,088 | $746 |
| 16 | Burlington | 23,976 | 84 | $51,628 | $115,784 | $902 |
| 17 | Newton | 15,692 | 84 | $53,873 | $161,059 | $826 |
| 18 | Storm Lake | 11,194 | 84 | $54,615 | $170,758 | $782 |
| 19 | Charles City | 7,364 | 84 | $52,039 | $128,017 | $621 |
| 20 | Atlantic | 6,770 | 84 | $54,692 | $138,713 | $684 |
| 21 | Sioux City | 85,469 | 85 | $64,250 | $179,943 | $904 |
| 22 | Grinnell | 9,511 | 85 | $57,813 | $198,148 | $852 |
| 23 | Marshalltown | 27,511 | 86 | $65,000 | $148,067 | $832 |
| 24 | Mason City | 27,271 | 86 | $60,786 | $144,252 | $841 |
| 25 | Ottumwa | 25,359 | 86 | $53,085 | $108,733 | $915 |
| 26 | Le Mars | 10,549 | 86 | $73,734 | $223,605 | $834 |
| 27 | Waverly | 10,399 | 86 | $78,278 | $246,782 | $861 |
| 28 | Fort Madison | 10,293 | 86 | $48,944 | $102,359 | $806 |
| 29 | Fairfield | 9,474 | 86 | $44,277 | $147,059 | $835 |
| 30 | Decorah | 7,611 | 86 | $57,939 | $277,060 | $746 |
| 31 | Estherville | 5,881 | 86 | $55,699 | $105,579 | $733 |
| 32 | Anamosa | 5,493 | 86 | $55,934 | $220,620 | $759 |
| 33 | Sheldon | 5,417 | 86 | $61,939 | $187,712 | $631 |
| 34 | Manchester | 5,112 | 86 | $57,969 | $160,728 | $758 |
| 35 | Des Moines | 213,164 | 87 | $62,378 | $194,392 | $995 |
| 36 | Indianola | 15,845 | 87 | $73,534 | $279,064 | $914 |
| 37 | Spencer | 11,351 | 87 | $57,175 | $172,012 | $737 |
| 38 | Perry | 7,875 | 87 | $57,276 | $141,243 | $901 |
| 39 | Webster City | 7,787 | 87 | $59,665 | $139,256 | $844 |
| 40 | Maquoketa | 6,123 | 87 | $53,462 | $177,483 | $703 |
| 41 | Algona | 5,443 | 87 | $52,903 | $166,950 | $865 |
| 42 | Iowa Falls | 5,095 | 87 | $50,035 | $122,764 | $877 |
| 43 | Council Bluffs | 62,670 | 88 | $61,181 | $196,527 | $964 |
| 44 | Boone | 12,482 | 88 | $64,192 | $166,057 | $837 |
| 45 | Winterset | 5,366 | 88 | $71,411 | $258,592 | $936 |
| 46 | Glenwood | 5,128 | 88 | $65,833 | $288,271 | $758 |
| 47 | Muscatine | 23,671 | 89 | $58,474 | $171,138 | $935 |
| 48 | Mount Pleasant | 9,214 | 89 | $58,895 | $176,987 | $672 |
| 49 | Clear Lake | 7,642 | 89 | $66,900 | $314,635 | $728 |
| 50 | Hiawatha | 7,179 | 89 | $65,610 | $234,116 | $818 |
| 51 | Orange City | 6,278 | 89 | $77,500 | $270,941 | $767 |
| 52 | Adel | 6,090 | 89 | $91,891 | $389,668 | $818 |
| 53 | Norwalk | 13,057 | 90 | $94,176 | $318,235 | $956 |
| 54 | Washington | 7,329 | 90 | $56,399 | $169,496 | $915 |
| 55 | Cedar Rapids | 136,929 | 91 | $66,895 | $183,682 | $886 |
| 56 | Davenport | 101,448 | 91 | $59,890 | $166,729 | $890 |
| 57 | Cedar Falls | 40,686 | 91 | $71,011 | $233,285 | $1,112 |
| 58 | Nevada | 6,933 | 91 | $69,742 | $224,887 | $806 |
| 59 | Dubuque | 59,315 | 92 | $63,520 | $216,138 | $915 |
| 60 | Carroll | 10,270 | 92 | $60,368 | $184,709 | $695 |
| 61 | Sioux Center | 8,227 | 92 | $82,050 | $306,984 | $775 |
| 62 | Spirit Lake | 5,409 | 92 | $70,248 | $306,042 | $891 |
| 63 | Marion | 41,401 | 93 | $81,519 | $249,715 | $906 |
| 64 | Altoona | 20,017 | 93 | $89,100 | $300,143 | $1,140 |
| 65 | Urbandale | 45,591 | 94 | $111,888 | $326,786 | $1,108 |
| 66 | Pella | 10,556 | 94 | $86,025 | $313,636 | $1,025 |
| 67 | Bondurant | 7,617 | 94 | $120,588 | $319,817 | $1,084 |
| 68 | Ankeny | 68,392 | 95 | $101,151 | $323,344 | $1,289 |
| 69 | Grimes | 15,402 | 95 | $99,896 | $330,335 | $1,042 |
| 70 | Pleasant Hill | 10,456 | 95 | $81,992 | $289,143 | $1,102 |
| 71 | West Des Moines | 68,744 | 96 | $82,345 | $294,330 | $1,153 |
| 72 | Waukee | 25,045 | 96 | $106,846 | $337,040 | $1,209 |
| 73 | Windsor Heights | 5,200 | 96 | $85,055 | $264,202 | $1,207 |
| 74 | Iowa City | 74,878 | 98 | $54,879 | $279,401 | $1,077 |
| 75 | Ames | 66,265 | 98 | $57,428 | $242,576 | $1,011 |
| 76 | Eldridge | 6,693 | 99 | $89,946 | $307,856 | $840 |
| 77 | Bettendorf | 38,997 | 100 | $100,570 | $294,879 | $1,060 |
| 78 | Johnston | 23,856 | 100 | $98,324 | $374,570 | $1,225 |
| 79 | Coralville | 22,494 | 100 | $67,691 | $234,792 | $1,022 |
| 80 | Polk City | 5,604 | 100 | $152,536 | $399,341 | $723 |
| 81 | North Liberty | 20,393 | 102 | $100,197 | $286,151 | $1,198 |
| 82 | Clive | 18,576 | 103 | $124,908 | $397,338 | $1,089 |
