7 Most Affordable Places to Live in Iowa (updated)

In a nation where housing costs continue climbing, Iowa stands out—not only for its rolling farmland and friendly communities, but for its remarkably affordable cost of living. With a median home price significantly below the national average and a stable economy, the Hawkeye State offers a compelling case for families, remote workers, and retirees seeking a life rich in experience, not expense. However, affordability varies widely throughout, and finding the ideal community is key to balancing budget with lifestyle.

This guide moves past the postcard imagery to provide a detailed, data-driven analysis of the most affordable places to live in Iowa for 2025. We’ve crunched the numbers on housing, utilities, transportation, and more to bring you seven cities and towns where you can achieve financial stability without sacrificing the unique Midwestern experience. If also considering other regions, you might find our guide on the most affordable places to live in Ohio helpful for comparison.

Key Takeaways

1. Widespread Affordability: Iowa’s overall cost of living is 8%-12% below the U.S. average, with many areas offering wallet-friendly housing, especially compared to neighboring states.
2. Variety of Options: Affordable living isn’t limited to rural towns; it includes suburbs, university cities, and communities with prosperous job markets, offering choices for every lifestyle.
3. Trade-Offs Exist: The most affordable cities often come with trade-offs, including fewer job opportunities outside key sectors, higher crime rates, or more remote locations that require longer drives for major amenities.
4. Beyond the Purchase Price: True affordability factors in utility costs, which can be high in areas with extreme temperatures, and transportation expenses, which are substantial in isolated communities.
5. Essential to Research: Safety and school ratings vary dramatically from city to city, making it crucial to research specific neighborhoods rather than relying on statewide generalizations.

I. Methodology: How We Chose the Most Affordable Places

Our selection of these seven locations is based on a weighted criterion prioritizing key metrics relevant to residents seeking value. Our goal is to identify places that offer a harmonious balance of affordability, access to essentials, and community, not just the lowest price tag.

1. Housing & Affordability (30%): The primary driver for relocation. We’ve examined median home price, average monthly rent, and overall affordability compared to state averages—using crucial ratios like home-price-to-income to gauge true accessibility in a high-cost environment.
2. Cost of Living (25%): Beyond housing, this metric evaluates day-to-day expenses that define a budget, including the cost of groceries, utilities, transportation, and healthcare relative to other parts of the state.
3. Access & Infrastructure (20%): Here, affordability can be negated by isolation. This criterion assesses critical access to groceries, healthcare facilities, major employers, and reliable internet and transportation links.
4. Community & Safety (15%): A fundamental need. It assesses crime rates and considers the strength of community engagement, social offerings, and amenities that contribute to a high quality of life.
5. Economic Resilience & Opportunity (10%): For long-term viability, we evaluate economic diversity, key industries, and employment trends to ensure a community is built for a stable and prosperous future.

Data for this article is compiled from verified 2025 sources, including Zillow, the U.S. Census Bureau, Bureau of Labor Statistics, FBI crime data, and local market reports.

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II. Detailed Community Analysis: Seven Affordable Enclaves

1. Burlington: The Mississippi River Bargain

A. Cost of Living & Housing: Burlington offers the lowest cost of living on our list, with incredibly affordable rent and home prices. This historic river town provides exceptional value for those needing to minimize housing costs above all else. Home-price-to-income ratio is the most favorable in Iowa, making homeownership accessible even on modest incomes.

B. Economy & Job Market: Economic prosperity is driven by manufacturing, healthcare, and its role as a regional service center. Major employers include General Electric and Great River Health System. Situated on the Mississippi River also supports tourism and transportation-related jobs, though the job market can be competitive for specialized roles.

C. Access & Infrastructure: Situated on the Mississippi River with access to US-34 and US-61, it serves as a regional hub for southeastern Iowa. Possessing essential services including a hospital, community college, and major retailers. While feeling somewhat isolated, it provides all necessary amenities for daily living.

D. Quality of Life & Culture: Life revolves around its historic downtown and riverfront location. Here offers beautiful Victorian architecture, Snake Alley (known as the crookedest street in the world), and access to outdoor recreation along the Mississippi. However, it faces socioeconomic challenges that contribute to its lower safety rating. The community requires resilience but offers rich history and natural beauty for the right person.

2. Mason City: The River City Value

A. Cost of Living & Housing: Mason City provides fantastic affordability in northern Iowa. A stable and affordable housing market, numerous homes are well under $150,000. Cost of living allows for a comfortable lifestyle, and the income-to-rent ratio is particularly attractive for renters.

B. Economy & Job Market: As a regional government seat and healthcare hub, their economy is stable with jobs in healthcare, education, and manufacturing. MC is home to MercyOne North Iowa Medical Center and several food processing facilities. The diverse economic base provides stability against market fluctuations.

C. Access & Infrastructure: Located at the crossroads of I-35 and US-18, this city serves as a regional center for north-central Iowa. Being home to a regional airport (MCW), well-equipped hospital system, and all major big-box stores, providing all the conveniences of a metropolis while maintaining small-town affordability.

D. Quality of Life & Culture: Residents embrace their architectural heritage, particularly its collection of Prairie School architecture inspired by Frank Lloyd Wright. The city has a surprisingly high safety rating, low-key pace of life, and is ideal for those wanting a small-city feel with all necessary services. For those seeking other affordable options, you might explore the cheapest places to live in Minnesota.

3. Council Bluffs: The Omaha Suburb Advantage

A. Cost of Living & Housing: Council Bluffs offers the unique advantage of being an affordable Iowa community with immediate access to Omaha’s job market and amenities. While not for those being extremely budget-conscious, it provides unbeatable value as a suburb of a major metro. Housing costs are significantly lower than across the river in Nebraska.

B. Economy & Job Market: CB residents commute to Omaha for work in finance, healthcare, and tech. However, it has its own growing economy back home in gaming (casinos), healthcare, and light industry. Their location makes it ideal for those who want access to big-city jobs without paying big-city prices.

C. Access & Infrastructure: Fully integrated into the Omaha metro area via I-80 and I-29, this region possesses exceptional roads, reliable utilities, and access to Omaha’s international airport (OMA). Being connected to a major city’s jobs and amenities while maintaining its own distinct, affordable identity is a significant advantage.

D. Quality of Life & Culture: Life combines small-town Iowa charm with big-city access. With numerous parks, community events, and family-friendly attractions. Its location provides easy access to the popular Nebraskan cultural amenities while offering a more affordable, community-oriented lifestyle. The safety rating reflects its status as a growing suburban community.

4. Sioux City: The Tri-State Hub

A. Cost of Living & Housing: Sioux City offers the lowest barrier to homeownership among the Hawkeye State’s larger cities. This market is full of sub-$200,000 homes, making it ideal for first-time buyers or those looking to maximize their budget. Overall cost of living is among the lowest for cities of its size in Iowa.

B. Economy & Job Market: Economic opportunity consists of meat processing, manufacturing, healthcare, and transportation. Major employers include Tyson Foods and MercyOne Siouxland Medical Center. Diversity provides some stability against market volatility, making it ideal for tradespeople, healthcare workers, and those in the food processing industry.

C. Access & Infrastructure: As a tri-state hub at the convergence of Iowa, Nebraska, and South Dakota, SC is well-connected via I-29. The city has a regional airport (SUX), comprehensive hospital system, and every major retailer. Its location makes it feel less isolated than other affordable Iowa communities.

D. Quality of Life & Culture: Life here is community-oriented and deeply connected to its agricultural and industrial heritage. Cost of living allows residents comfort on a single income. The city possesses an average safety rating reflecting its small-city status with urban amenities. This community offers a balanced lifestyle with access to shopping, dining, and cultural events.

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5. Davenport: The Quad Cities Anchor

A. Cost of Living & Housing: Davenport provides fantastic value in the scenic Quad Cities region. Housing is affordable, and the cost of living is manageable, especially for those who take advantage of the Mississippi Riverfront amenities. The home-price-to-income ratio is highly attractive, allowing families to easily own a home.

B. Economy & Job Market: A stable economy supported by manufacturing, healthcare, and its role as the largest city in the metro area. Major employers include the Rock Island Arsenal and Genesis Health System. Diverse economic bases provide employment opportunities across multiple sectors.

C. Access & Infrastructure: Fully connected via I-80 and I-74, it serves as a major transportation hub for the region. Having access to the Quad Cities International Airport (MLI), well-regarded hospital system, and every major big-box store and grocery chain, providing all urban conveniences.

D. Quality of Life & Culture: Davenport living is defined by its Mississippi River location, historic architecture, and vibrant downtown. Hosting numerous parks, cultural events, and access to Division I athletics at St. Ambrose University is ideal. Its above-average safety rating for a city its size reflects a tight-knit, community-oriented feel with urban amenities.

6. Cedar Rapids: The Corridor’s Industrial Heart

A. Cost of Living & Housing: While not exactly for the faint of heart financially, Cedar Rapids offers the best value among Iowa’s larger cities. As the economic engine of the Iowa City-Cedar Rapids Corridor, it offers stable employment, achieving schools, and urban amenities at a price that remains below the national average. Your dollar stretches farther here than in many comparable cities.

B. Economy & Job Market: Work is anchored by manufacturing, particularly food processing and aerospace. Major employers include Collins Aerospace and General Mills. Healthcare and education are also significant sectors. This diverse job market provides stability and opportunity across multiple industries.

C. Access & Infrastructure: Well-connected via I-380 with convenient access to the Eastern Iowa Airport (CID), CR has exceptional infrastructure. Residents possess reliable utilities, top-notch emergency services, and all the amenities of a much larger city while maintaining Midwestern affordability.

D. Quality of Life & Culture: This region is consistently ranked one of the safest cities in IA while boasting numerous parks, community centers, and cultural attractions like the Cedar Rapids Museum of Art. Many deem it the premier choice for families seeking access to urban jobs without sacrificing safety, space, and quality schools.

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7. Waterloo: The Industrial Value Leader

A. Cost of Living & Housing: As one of Iowa’s larger cities, Waterloo offers a rare combination of urban amenities and exceptional affordability. Having a floor-level cost of living driven by a housing market that provides significant value, homebuyers can find spacious properties for a fraction of the cost of other Midwestern cities.

B. Economy & Job Market: Economic opportunities are anchored by manufacturing, particularly agricultural equipment with John Deere being a major employer. Healthcare, education, and retail are other significant sectors. The diverse job market provides opportunities, though it can be competitive for high-paying specialized roles outside manufacturing.

C. Access & Infrastructure: Fully connected via US-20 and US-63, this is part of the Waterloo-Cedar Falls metropolitan area. The city has a regional airport (ALO), comprehensive healthcare system, and all essential urban amenities. Its location provides ideal access to both rural and urban Iowa.

D. Quality of Life & Culture: Life is defined by its industrial heritage, diverse community, and access to higher education through the University of Northern Iowa in nearby Cedar Falls. Here offers cultural events, parks, and family-friendly attractions. Its safety rating reflects the challenges of an industrial city while offering urban amenities at an affordable price.

III. A Relocation Checklist for Your New Iowa Home

1. Budget for the True Cost: Account for utility costs, which can be high for heating in winter and cooling in summer. Factor in transportation costs, especially when commuting or living in a more remote area.
2. Secure Employment First: Job markets can be hyper-localized. Secure employment before moving, especially if you’re not in a high-demand field like healthcare, education, or skilled trades.
3. Visit in Person: If possible, visit your chosen community. Neighborhoods can change from block to block in some cities. Get a feel for the area, traffic, and amenities firsthand.
4. Confirm Internet Reliability: For remote workers, this is non-negotiable. While larger towns have fast service, confirm the provider and available speeds at your specific address before signing a lease or mortgage.

Conclusion: Your Affordable Iowa Future Awaits

From the industrial strength of Waterloo to the suburban value of Council Bluffs, these seven communities prove that you can access the Midwestern dream without a premium price tag. Iowa offers a unique opportunity for building a future where your quality of life is matched by the financial wisdom of your chosen home. By carefully considering what each of these affordable enclaves has to offer, you can find the perfect spot to plant your roots and thrive in the Heartland. For those considering a different state, you might also explore the pros and cons of living in Utah.

FAQs About the Most Affordable Places to Live in Iowa

1. Is it possible to find a home under $150,000 in Iowa? Yes, absolutely. Markets like Burlington, Mason City, and Waterloo regularly have numerous homes listed below $150,000. These may be older homes or require updates, but they are livable and represent an incredible value.

2. What is the biggest hidden cost of moving to Iowa? Utilities and property taxes. Iowa winters can be harsh, leading to high heating bills. Additionally, while property tax rates vary by county, they can be higher than national averages in certain areas, offsetting some of the housing affordability.

3. Are these communities good for remote workers? It varies. Larger towns including Cedar Rapids, Davenport, and Des Moines suburbs with multiple providers having reliable high-speed internet. Rural communities have spotty service, but it can be slower and pricier. It’s essential to confirm reliable internet availability at your specific address before moving.

4. What is the job market like in these affordable cities? Generally stable but localized. Manufacturing, healthcare, and education are ideal sectors across most of these cities. This diverse job markets are in Cedar Rapids, Davenport, and Waterloo, while more rural areas may have fewer opportunities outside key local industries.