| Index | Ottumwa | Iowa | National |
| Cost of living | 83 | 89 | 100 |
| Groceries | 95 | 97 | 100 |
| Health care | 98 | 96 | 100 |
| Housing | 53 | 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 |
Getting a feel for the cost of living in Ottumwa is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Ottumwa is 83, which is 17% lower than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.
Housing expenses often consume a significant portion of your net income, occasionally surpassing 30%. Fortunately, housing costs in Ottumwa are 46.5% below the national average. This highlights the region's exceptional affordability for both homeownership and rentals in comparison to the rest of the country. This favorable housing situation allows residents to allocate a more reasonable fraction of their income to housing, resulting in enhanced financial flexibility and improved overall financial well-being.
Nobody knows their city better than the people who actually live there. So, we asked 86 local residents how they would rate the cost of living in Ottumwa and this is how they responded. 20% of people said that the cost of living was affordable, with prices decreasing, while 80% of people said that the cost of living was very expensive and prices continue to rise.
Is Ottumwa affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Ottumwa, for instance, where the median home price falls 57.4% lower than the national average, and monthly rent rates are 21.3% lower than usual. Additionally, median income levels contribute to the equation, with Ottumwa flaunting a median household income of $62,566, 23.1% lower than the national norm.
Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Ottumwa, the groceries index is 4.9% lower than the national average.
Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Ottumwa, the housing index stands at 46.5% lower than the national average.
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.
The Ottumwa cost of living estimates above use a normalized U.S. average of 100 as the baseline for comparison. Housing values incorporate local home price and rental information from the U.S. Census, while all other estimates are AI-assisted and modeled using expected everyday expenses, local market trends, climate, and transportation-related cost pressures. The results are intended for practical city-to-city comparisons.
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| Groceries index | |
| Health care index | |
| Housing index | |
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| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $85,042 | $7,087 | $1,984 | $2,552 |
| Renters | $42,522 | $3,544 | $992 | $1,276 |
| 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. |
| Martinsburg, IA | 138 | 77 | 23.5% |
| Chillicothe, IA | 101 | 79 | 21.1% |
| Unionville, IA | 108 | 79 | 21.3% |
| Eldon, IA | 940 | 80 | 20.2% |
| Blakesburg, IA | 240 | 79 | 20.6% |
| Ottumwa, IA | 25,168 | 83 | 16.7% |
| City | Population | Cost of Living Index | National Avg. |
| Norton Shores, MI | 25,151 | 95 | 5.2% |
| Mequon, WI | 25,189 | 130 | 29.5% |
| Loma Linda, CA | 25,144 | 140 | 39.9% |
| Watauga, TX | 25,192 | 101 | 1.3% |
| Trotwood, OH | 25,200 | 83 | 17.1% |
| Ottumwa, IA | 25,168 | 83 | 16.7% |
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