Iowa attracts Americans from all over. And there’s a good reason why: Affordable cost of living, cheap groceries, and top-quality education. You can’t go wrong with the Hawkeye State!
Although property prices have risen in recent years, the average home value in the top 10 cheapest cities is still only around $200,000. Keokuk’s cost of living is 27.9% lower than the national average, and Fort Madison is 27.9% more affordable than the rest of the country.
But that’s not all! Retirees can enjoy Burlington’s friendly community and peaceful environment, with homes averaging a nominal $115K. Meanwhile, Creston offers a booming job market in education, healthcare, and technology, with median home prices at just $137,682.
👉 Iowa Homes for Sale: Find your dream home in Iowa’s most affordable cities!
Cheapest Places to Live in Iowa in 2025
Here’s our ranking of the most affordable places to live in Iowa. We’ve considered the average household income, median list price, median house rent, and the population of the cities.
| City | Median Home Value | Unemployment Rate | Poverty Rate | Median Household Income | Population |
|---|---|---|---|---|---|
| 1. Keokuk | $80,776 | $639 | 27.9% lower⬇️ | $49,340 | 9,513 |
| 2. Oelwein | $100,058 | $750 | 26.9% lower⬇️ | $49,821 | 5,791 |
| 3. Fort Madison | $103,390 | $685 | 27.9% lower⬇️ | $49,359 | 10,053 |
| 4. Burlington | $115,765 | $800 | 27.4% lower⬇️ | $55,274 | 23,565 |
| 5. Creston | $138,655 | $900 | 27.3% lower⬇️ | $50,752 | 7,392 |
| 6. Waterloo | $138,397 | $850 | 24.3% lower⬇️ | $56,344 | 66,606 |
| 7. Oskaloosa | $172,637 | $1,245 | 24.7% lower⬇️ | $62,172 | 11,448 |
| 8. Davenport | $168,196 | $938 | 17.1% lower⬇️ | $64,497 | 100,354 |
| 9. Dubuque | $225,223 | $1,000 | 15.1% lower⬇️ | $64,985 | 58,877 |
| 10. Ames | $252,666 | $1,050 | 12.4% lower⬇️ | $60,102 | 65,686 |
10 Cheapest Places to Live in Iowa
Here’s our list of 10 cities that offer affordable living options in the Hawkeye State:
#1 Keokuk
- Median house rent is $639.
- Median home value of Keokuk is $80,776.
- Cost of living in Keokuk is 27.9% cheaper than the national average.
- 3 Popular Zips in Keokuk, IA: 50514 | 52157 | 51007
Keokuk is affordable in Iowa, with groceries 9.3% lower than the national average. Homes here on elevated bluffs offer stunning views of the Mississippi River, and charming historic houses grace the lovely Grand Avenue. The city boasts historical landmarks like the Lock and Dam No. 19, which was the largest single powerhouse electric generating plant.
» Keokuk Homes for Sale: Find your dream home in this city.
#2 Oelwein
- Median house rent is $750 | Rental prices range between $525 and $975.
- Median home value of Oelwein is $100,058.
- Cost of living in Oelwein is 26.9% cheaper than the national average.
- 3 Popular Zips in Oelwein, IA: 50514 | 52157 | 51007
Oelwein is a small city with a strong sense of community. The Oelwein Community School District provides education from elementary through high school. It also offers utilities 1.7% lower than the national average. The city is home to the Hub City Heritage Railway Museum, reflecting its railroad history.
» Oelwein Homes for Sale: Browse thousands of property listings in Hub City.
#3 Fort Madison
- Median house rent is $685 | Rental prices range between $475 and $1,400.
- Median home value of Fort Madison is $103,390.
- Cost of living in Fort Madison is 27.9% cheaper than the national average.
- 3 Popular Zips in Fort Madison, IA: 50514 | 52157 | 51007
Located along the Mississippi River, Fort Madison is rich in history, featuring the Old Fort Madison, a reconstructed military fort. The city hosts events like the Tri-State Rodeo, attracting visitors annually. Major employers include Siemens Energy and the Iowa State Penitentiary.
» Fort Madison Homes for Sale: Get yourself affordable houses in Iowa.
#4 Burlington
- Median house rent is $800 | Rental prices range between $300 and $1,800.
- Median home value of Burlington is $115,765.
- Cost of living in Burlington is 27.4% cheaper than the national average.
- 3 Popular Zips in Burlington, IA: 50514 | 52157 | 51007
Boasts transportation costs 39.5% lower than the national average, making it an affordable place to live. Known for its scenic riverfront and Snake Alley, the “crookedest street in the world,” it offers a mix of history and modern amenities. Key attractions include the Burlington Bees baseball team and the annual Steamboat Days music festival.
» Burlington Homes for Sale: Search homes in one of the cheapest place in Iowa to live.
Use a Iowa Cost of Living Calculator to compare housing, utilities, and transportation costs. Get a detailed cost breakdown across affordable cities for free💲.
#5 Creston
- Median house rent is $900.
- Median home value of Creston is $138,655.
- Cost of living in Creston is 27.3% cheaper than the national average.
- 3 Popular Zips in Creston, IA: 50514 | 52157 | 51007
Often referred to as the ‘Vibrant City,’ Creston’s grocery expenses are 6.2% lower than the national average. Creston is home to Southwestern Community College and Buena Vista University. The city features McKinley Park and hosts events like the annual Balloon Days Festival. Major employers include Bunn-O-Matic and Wellman Dynamics.
#6 Waterloo
- Median house rent is $850 | Rental prices range between $325 and $2,500.
- Median home value of Waterloo is $138,397.
- Cost of living in Waterloo is 24.3% cheaper than the national average.
- 3 Popular Zips in Waterloo, IA: 50514 | 52157 | 51007
With an average household income of $56,344, you can comfortably live in Waterloo. The annual cost for housing, food, health care, and other essentials for a single adult in Waterloo is $30,888. Waterloo Community School District and Hawkeye Community College provide educational services. Major employers are John Deere and Tyson Fresh Meats.
» Waterloo Homes for Sale: Find a home in one of the cheapest places to live in Iowa.
#7 Oskaloosa
- Median house rent is $1,245 | Rental prices range between $895 and $1,750.
- Median home value of Oskaloosa is $172,637.
- Cost of living in Oskaloosa is 24.7% cheaper than the national average.
- 3 Popular Zips in Oskaloosa, IA: 50514 | 52157 | 51007
Oskaloosa’s annual expenditure on food for an individual amounts to $2,933. This makes it one of the most budget-friendly options across the country. The Oskaloosa Community School District and William Penn University serve educational needs. The city hosts events like the Southern Iowa Fair and Art on the Square for families to enjoy
» Oskaloosa Homes for Sale: Get yourself a home in this city.
#8 Davenport
- Median house rent is $938 | Rental prices range between $550 and $3,950.
- Median home value of Davenport is $168,196.
- Cost of living in Davenport is 17.1% cheaper than the national average.
- 3 Popular Zips in Davenport, IA: 50514 | 52157 | 51007
Davenport, part of the Quad Cities, blends urban and suburban living. It has good schools like the Davenport Community School District and St. Ambrose University. Popular attractions include the Figge Art Museum and the Bix Beiderbecke Memorial Jazz Festival. Major employers are Genesis Health System and Deere & Company, making it a great place for young professionals and families.
» Davenport Homes for Sale: Checkout property listings in Davenport, IA.
#9 Dubuque
- Median house rent is $1,000 | Rental prices range between $525 and $2,875.
- Median home value of Dubuque is $225,223.
- Cost of living in Dubuque is 15.1% cheaper than the national average.
- 3 Popular Zips in Dubuque, IA: 50514 | 52157 | 51007
Dubuque offers housing costs that are 38% cheaper than the national average. The National Mississippi River Museum & Aquarium and the Dubuque Arboretum & Botanical Gardens are the top attractions in the city. For young professionals, manufacturing and medical sectors are prominent with major employers like John Deere and MercyOne Medical Center.
» Dubuque Homes for Sale: Discover affordable homes in one of the cheapest cities to live in Iowa.
#10 Ames
- Median house rent is $1,050 | Rental prices range between $500 and $4,000.
- Median home value of Ames is $252,666.
- Cost of living in Ames is 12.4% cheaper than the national average.
- 3 Popular Zips in Ames, IA: 50514 | 52157 | 51007
Home to Iowa State University, Ames is a vibrant city with a strong emphasis on education and research. Reiman Gardens and the Brunnier Art Museum are some of the attractions here. Major employers are Iowa State University and Mary Greeley Medical Center. Ames’s educational environment and affordable living make it ideal for students, young professionals, and families.
» Ames Homes for Sale: Find homes for sale in IA.
So, Where Is the Cheapest Place to Live in Iowa?
You will find cheap houses for sale in Iowa under 100K in cities like Keokuk, Oelwein, and Burlington. They offer stable job opportunities, and the cost of living is more affordable than other Iowa cities.
Cities like Ames and Dubuque are slightly expensive but provide better job opportunities. You must research the home prices and living costs. Also, getting a mortgage pre-approval helps you stand out in the competition before buying a house in Iowa.
📢 Browse Cheap Houses for Sale in Iowa
Here are a few options of cheap houses for sale in IA.
» Best Rental Websites in America: Can’t find your dream home within your budget? Explore thousands of listings on the nation’s top rental websites.
Find an Affordable House With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and tiny homes for sale in Iowa on Houzeo.
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Research Methodology for Cheapest Places to Live in Iowa
To rank the top cities in Iowa, we analyzed all the regions, evaluating them based on specific criteria. Below is a breakdown of the factors used and the sources of information that informed our rankings.
- Population: World Population Review [1]
- Median Home Price: Zillow [2]
- Median Rent: Zillow [3]
- Cost of Living: Rent Cafe [4]
Frequently Asked Questions
What is the least expensive place to live in Iowa?
The cheapest place to live in Iowa is Keokuk. It offers one of the most transportation systems in the state, which is 40.8% lower than the national average.
» 10 Cheapest Places to Live in Iowa: Find out the other cheapest places to live in Iowa.
Is Iowa cheap to live in?
Yes, it is. The median home value is $215,153. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
Where is the best place to live in Iowa?
The best place to live in Iowa is Des Moines, followed by Cedar Rapids, Iowa City, Sioux City, Dubuque, Davenport, and Cedar Falls.
Which Iowa city has the lowest cost of living?
keokuk has the lowest cost of living, which is 27.9% and 10% lower than the national and state average, respectively.
