An Overview of Cost of Living in Ottumwa, IA
Are you thinking about relocating, but curious about the potential cost of living in Ottumwa? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Ottumwa stands at 85, making it 15% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
Housing expenses can absorb a substantial portion of your net income, sometimes exceeding 30%. Thankfully, Ottumwa stands out by reporting housing costs that are 47.1% lower than the national average. This signifies that both homeownership and rental expenses in this region are considerably more budget-friendly compared to the rest of the country. With such favorable housing affordability, residents of Ottumwa can allocate a more reasonable portion of their income to housing, allowing for greater financial flexibility.
What Do Locals Say About the Cost of Living in Ottumwa?
The real experts on a city are its residents. That's why we reached out to 72 locals to get their views on the cost of living in Ottumwa. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 13% found it budget-friendly with decreasing prices, while 88% said it's simply not affordable as prices have continued to rise.
Is Ottumwa Affordable?
Wondering if Ottumwa is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Ottumwa, for example, the median home price is 59% lower than what folks pay nationally, and monthly rent is 19.4% lower than the usual rates. Plus, income levels matter too, with Ottumwa boasting a median household income of $42,418, which is 23.3% lower than the national average.
What Factors can Influence the Cost of Living in Ottumwa?
Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.
Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Ottumwa starts at 6% and the income tax rates start at 0.33%.
Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In Ottumwa, healthcare costs are 5.6% lower than the national average.
Where is the Data From?
The Ottumwa cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.
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