8 best affordable places to live In Iowa

There are many affordable places to live in Iowa, a state that consistently ranks high for low cost of living. Here are eight of the best options to consider. 

Iowa consistently ranks as one of the most affordable states to live in. With an average home sale price of around $232,000 and an average monthly rent of around $1,020. Compared to the national averages of nearly $400,000 and $1,400, respectively, this is a pretty significant savings. As a result, there are dozens of cities you can choose from at an affordable price. However, to help narrow things down, here is our list of the top 8 best affordable cities in Iowa

How we chose the top 8 cities

To create our list of the top eight affordable cities in Iowa, we looked at a variety of criteria. Things like the overall cost of living (utilities, transportation, and groceries), average household income, and, of course, housing costs were considered. We also looked at the cities in terms of lifestyle and amenities in order to find the locations that offered the most value. We consulted data from sources such as the United States Census Bureau, Redfin, and Zillow, and ensured that each city on this list has an average home sale price below the state average of $232,467.

1. Mason City

Population: 26,906

Median Household Income: $62,369

Average Home Sale Price: $158,209

Average Monthly Rent: $700

Coming in first on our list is Mason City. Located in northeastern Iowa, Mason City is known for its amazing architecture. Several of its houses and buildings were designed by famous architects, including Walter Burley Griffin, William Drummond, Curtis Besinger, and even Frank Lloyd Wright. With a population under 30,000, this location exudes small-town charm but offers plenty of amenities. Besides architecture, residents can enjoy unique museums, a variety of restaurants, nature activities, and more. Cost of living is 11% lower than the national average, and housing costs fall well below both state and national averages, making Mason City not only a fun and interesting place to live but an affordable one.

2. Waterloo

Population: 66,606

Median Household Income: $56,344

Average Home Sale Price: $173,417

Average Monthly Rent: $763

Nestled in northeastern Iowa, Waterloo is home to more than 66,000 residents, which is no surprise given its affordability. A bit more expensive than Charles City, Waterloo’s home and rent prices still average well below national and state averages. The cost of living as a whole is about 14% lower than the national average. As far as things to do, this city has plenty. Between Waterloo and its neighbor, Cedar Falls, residents can enjoy a range of activities, including cheering on their minor league hockey and baseball teams, dining at locally owned restaurants, checking out museums, or making a splash at Iowa’s largest waterpark, Lost Island Waterpark.

3. Burlington

Population: 23,565

Median Household Income: $55,274

Average Home Sale Price: $121,567

Average Monthly Rent: $865

Located near the Mississippi River, this southeastern Iowa river town boasts plenty of charm at an affordable price tag. In fact, in 2024, it was recognized by the Mortgage Research Center as having the second most affordable housing market in Iowa. Additionally, the city of nearly 25,000 offers a variety of activities. With the Mississippi at its doorstep, outdoor enthusiasts can enjoy plenty of rafting, fishing, and boating. For those who prefer to stay on dry land, Burlington has several restaurants, museums, and attractions, including its famous Snake Alley, which was named the “crookedest street in America” by Ripley’s Believe It or Not!

4. Davenport

Population: 100,354

Median Household Income: $64,497

Average Home Sale Price: $189,100

Average Monthly Rent: $978

Part of the Quad Cities, Davenport is situated near the Illinois/Iowa border. Boasting around 100,000 residents, this city is both vibrant and affordable. Both house and rental prices fall below the state average, and residents can expect grocery and utility prices to be 3% and 17% below the national average, respectively. Downtown Davenport rests near the banks of the Mississippi and hosts several events and festivals throughout the year, including one of the country’s largest St. Patrick’s Day Parades. All year long, residents can enjoy a diverse array of restaurants, unique shops, and lots of riverfront biking and walking trails.

5. Cedar Rapids

Population: 135,958

Median Household Income: $67,859

Average Home Sale Price: $198,584

Average Monthly Rent: $953

The second-largest city in the state, Cedar Rapids has no shortage of activities and amenities, all at an attainable price. Known for its affordable housing, it ranked number four on WalletHub’s list of most affordable cities for renting. Additionally, Niche ranked it as the 17th best U.S. city for buying a house in 2025. Besides that, the cost of living as a whole is 11% lower than the national average. Along with these affordable prices, the city offers plenty to do, including visiting historical spots like the Paramount Theatre, dining out at one of its unique eateries, or hitting up one of more than 70 parks and recreation areas.

6. Storm Lake

Population: 11,434

Median Household Income: $58,341

Average Home Sale Price: $176,500

Average Monthly Rent: $800

This small town of around 11,000 people is located in northwestern Iowa. Housing costs come in well below the national and state averages, and for its size, Storm Lake offers quite a few activities. One of its biggest draws is, of course, the lake, which is the fourth-largest glacier lake in Iowa. It spans over 3,200 acres and offers plenty of space for swimming, boating, and fishing. Residents can also enjoy a range of restaurants, an indoor and outdoor waterpark, museums, and more.

7. Sioux City

Population: 85,272

Median Household Income: $65,473

Average Home Sale Price: $207,292

Average Monthly Rent: $1,108

Sharing a border with Southeast South Dakota and Northeast Nebraska, Sioux City, Iowa, offers plenty of opportunities and amenities at a relatively affordable price. While housing prices are below the state average, we found rent to be slightly higher at around $1,100 per month. That being said, residents have their choice of a range of activities, including Broadway shows, concerts, festivals, and more.

8. Des Moines

Population: 210,381

Median Household Income: $63,966

Average Home Sale Price: $209,584

Average Monthly Rent: $1,012

Rounding out the list is Iowa’s capital city, Des Moines. The largest city in the state, Des Moines, has a population exceeding 210,000 residents. While the cost of living is higher than some of the other locations on this list, the city offers activities and a lifestyle that’s hard to match. That being said, house and rent prices do still fall below the national and state averages. Des Moines features many of the amenities typically found in larger cities, like theaters, museums, unique shopping experiences, high-quality restaurants, sporting events, and more. Plus, during the summer and fall, it is home to one of the nation’s largest and best farmers’ markets. Visitors can enjoy live music, tasty food, and, of course, tons of shopping at this weekly Saturday morning event in downtown Des Moines.

This article first appeared on Good Info News Wire and is republished here under a Creative Commons license.

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