Cheapest Places to Live in Iowa

Access hyperlocal data to help you make a confident and informed decision.

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. Using AI-assisted city-level cost of living estimates, supported by U.S. Census housing data and regional economic modeling, helps identify these affordable regions and gives potential residents a practical way to compare affordability from one city to the next. In a state known for its community spirit and economic opportunities, finding affordable living options enhances the overall living experience.

Centerville Population: 5,579 9% cheaper than Iowa average

Med. Home Value: $132,699 Med. Rent: $946 Med. Household Inc.: $49,656

With a cost of living index that is 9% cheaper than the state average, Centerville 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, Centerville provides an inviting and cost-effective environment to call home.

Charles City Population: 7,624 7% cheaper than Iowa average

Med. Home Value: $165,491 Med. Rent: $811 Med. Household Inc.: $56,042

The second most affordable city in Iowa is Charles City and stands out for its cost-effective lifestyle. With an overall cost of living that is 7% 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.

Maquoketa Population: 6,163 7% cheaper than Iowa average

Med. Home Value: $164,311 Med. Rent: $870 Med. Household Inc.: $72,304

Maquoketa lands in the #3 spot for the cheapest cities to live in Iowa, with a cost of living that is 7% 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.

Red Oak Population: 5,512 7% cheaper than Iowa average

Med. Home Value: $140,191 Med. Rent: $962 Med. Household Inc.: $74,480

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. Red Oak offers a picturesque and affordable living environment, with a cost of living that is 7% 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 .

Osceola Population: 5,362 7% cheaper than Iowa average

Med. Home Value: $164,969 Med. Rent: $864 Med. Household Inc.: $75,107

For those wanting to live well on a budget, Osceola is ideal, with a cost of living that is 7% 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.

Oelwein Population: 6,065 7% cheaper than Iowa average

Med. Home Value: $154,407 Med. Rent: $973 Med. Household Inc.: $57,403

Oelwein 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.

Ottumwa Population: 25,168 7% cheaper than Iowa average

Med. Home Value: $139,301 Med. Rent: $1,136 Med. Household Inc.: $62,566

With its cost-effective lifestyle, Ottumwa 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.

Cherokee Population: 5,026 7% cheaper than Iowa average

Med. Home Value: $174,179 Med. Rent: $825 Med. Household Inc.: $68,177

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. Cherokee fits that mold and has a cost of living that is 7% cheaper than Iowa.

Clarinda Population: 5,584 6% cheaper than Iowa average

Med. Home Value: $162,832 Med. Rent: $915 Med. Household Inc.: $70,594

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. Clarinda is one of the most affordable cities in Iowa, and has a cost of living that is 6% cheaper than the state average.

Marshalltown Population: 27,894 6% cheaper than Iowa average

Med. Home Value: $170,660 Med. Rent: $1,104 Med. Household Inc.: $81,472

With a cost of living that is 6% cheaper than Iowa, Marshalltown 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	Centerville	5,579	81	$132,699	$49,656
2	Charles City	7,624	83	$165,491	$56,042
3	Maquoketa	6,163	83	$164,311	$72,304
4	Red Oak	5,512	83	$140,191	$74,480
5	Osceola	5,362	83	$164,969	$75,107
6	Oelwein	6,065	83	$154,407	$57,403
7	Ottumwa	25,168	83	$139,301	$62,566
8	Cherokee	5,026	83	$174,179	$68,177
9	Clarinda	5,584	84	$162,832	$70,594
10	Marshalltown	27,894	84	$170,660	$81,472
11	Oskaloosa	12,090	84	$170,766	$73,684
12	Fort Dodge	24,700	84	$183,008	$67,304
13	Keokuk	10,556	84	$136,168	$64,204
14	Webster City	7,995	84	$167,778	$79,718
15	Creston	8,021	84	$181,985	$65,839
16	Knoxville	7,412	85	$179,341	$76,055
17	Iowa Falls	5,266	85	$167,950	$66,754
18	Clinton	25,804	85	$185,612	$68,321
19	Shenandoah	5,020	85	$165,025	$64,339
20	Fort Madison	10,650	86	$148,175	$66,560
21	Manchester	5,149	86	$199,534	$75,309
22	Perry	7,820	86	$154,863	$72,609
23	Denison	8,630	86	$179,902	$79,496
24	Estherville	5,853	86	$157,496	$78,493
25	Boone	12,825	87	$209,031	$90,131
26	Mason City	27,815	87	$198,497	$81,099
27	Fairfield	10,625	87	$203,280	$64,216
28	Waterloo	70,052	88	$206,637	$69,795
29	Atlantic	6,807	88	$222,233	$70,516
30	Mount Pleasant	8,795	88	$223,938	$77,453
31	Burlington	25,653	88	$171,486	$68,334
32	Newton	15,563	88	$222,379	$71,623
33	Independence	6,286	89	$229,057	$88,595
34	Anamosa	5,674	89	$228,752	$63,503
35	Spencer	11,331	89	$240,813	$68,078
36	Sioux City	85,304	89	$224,731	$85,184
37	Sheldon	5,334	89	$260,261	$80,885
38	Carroll	10,175	89	$269,599	$74,729
39	Washington	7,490	90	$222,279	$81,927
40	Nevada	6,959	90	$261,212	$90,809
41	Vinton	5,238	90	$238,040	$65,243
42	Council Bluffs	63,786	90	$215,768	$79,153
43	Storm Lake	10,898	91	$261,887	$70,839
44	Cedar Rapids	136,032	91	$255,140	$89,709
45	Muscatine	24,516	91	$200,394	$79,760
46	Davenport	105,320	91	$242,943	$79,074
47	Des Moines	221,968	91	$256,147	$82,534
48	Grinnell	9,424	92	$275,503	$75,206
49	Dubuque	59,811	92	$269,756	$83,245
50	Hiawatha	7,665	92	$278,211	$77,241

Methodology

To formulate the list of the cheapest places to live in Iowa, a city-level cost of living model was used with a national average baseline of 100. This framework is designed to provide a practical comparison of how far your dollar may go across different urban areas. Housing estimates incorporate the latest available U.S. Census home price and rental data, while all other values are generated using AI-assisted economic models based on expected everyday expenses, regional pricing trends, climate, transportation patterns, and local economic conditions. The overall index is weighted across key spending categories, including housing (30%), groceries (16%), transportation (12%), healthcare (10%), utilities (8%), lifestyle and entertainment (8%), household expenses (8%), and education and childcare (8%).

Map of Cost of Living by State

Well Below nat. avg.
Below nat. avg.
Similar to nat. avg.
Above nat. avg.
Well above nat. avg.

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.