| Index | Iowa City | Iowa | National |
| Cost of living | 102 | 89 | 100 |
| Groceries | 95 | 97 | 100 |
| Health care | 98 | 96 | 100 |
| Housing | 116 | 74 | 100 |
| Transportation | 98 | 97 | 100 |
| Utilities | 96 | 95 | 100 |
| Lifestyle & Entertainment | 95 | 95 | 100 |
| Household Items | 95 | 97 | 100 |
| Education & Childcare | 96 | 94 | 100 |
Understanding the cost of living in Iowa City can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Iowa City cost of living index is 102, which is 2% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
The cost of living in Iowa City closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, houshold expenses, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Iowa City can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.
The most insightful perspective on a city comes from its residents. We recently surveyed 18 locals to gauge their perception of the cost of living in Iowa City. The feedback revealed that 33% of respondents found the cost of living to be reasonable, with prices on the decline, while 67% regarded it as notably expensive with prices that continue to rise.
Is Iowa City an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Iowa City, the median home price is 23.2% higher than what most folks pay across the country, and monthly rent prices are 0.3% higher than the usual rates. Income levels in Iowa City come in at $71,058, which is 12.6% lower than the national average.
Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Iowa City, the healthcare costs are 1.7% lower than the national average.
Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday household expenses, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Iowa City, the standard sales tax rate starts at 6%, and the income tax rates commence at 4.4%.
Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Iowa City, is 16.4% higher than the national average.
The Iowa City cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
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| Groceries index | |
| Health care index | |
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| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $126,353 | $10,529 | $2,948 | $3,791 |
| Renters | $38,597 | $3,216 | $901 | $1,158 |
| State | General Sales Tax | With Max Surtax |
| Iowa | 6% | 7% |
| State | Income Tax (Low) | Income Tax (High) |
| Iowa | 4.4% | 6% |
| City | Population | Cost of Living Index | National Avg. |
| Frytown, IA | 48 | 96 | 3.9% |
| Nichols, IA | 387 | 83 | 17.2% |
| West Liberty, IA | 3,829 | 90 | 10.2% |
| Lone Tree, IA | 1,418 | 91 | 9.5% |
| Oxford, IA | 735 | 91 | 8.6% |
| Iowa City, IA | 77,990 | 102 | 2.2% |
| City | Population | Cost of Living Index | National Avg. |
| Arlington Heights, IL | 77,990 | 124 | 24.1% |
| Bellflower, CA | 78,041 | 151 | 50.6% |
| Carmichael, CA | 77,824 | 140 | 39.9% |
| Wyoming, MI | 78,208 | 92 | 7.7% |
| Georgetown, TX | 77,731 | 116 | 15.6% |
| Iowa City, IA | 77,990 | 102 | 2.2% |
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