Iowa, known as the "Hawkeye State", is a highly affordable Midwest state with housing 28% below national average. Here is everything you need to know about the cost of living in the Hawkeye State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Iowa for a single person earning the median income of $63,200/year:
Each category shows how Iowa compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Iowa.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Iowa.
The most popular cities for residents and newcomers in Iowa:
Housing is the single biggest expense in Iowa, as it is everywhere. The median home price in Iowa is $215,000, and the median rent for a one-bedroom apartment is $850/month. With a housing cost index of 72, Iowa housing is 28% cheaper than the national average.
Housing in Iowa is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Iowa has a state income tax rate of 6%. On the median household income of $63,200, you will pay approximately $3,792/year in state income tax ($316/month). This is a moderate rate that most households can absorb.
The average single person in Iowa spends approximately $380/month on groceries. A family of four can expect to spend $950-$1,140/month. The food cost index of 95 means groceries in Iowa are 5% below the national average.
Gas prices in Iowa average $3.05/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,830/year in fuel costs.
Iowa healthcare costs are 1% above the national average (index: 101). The average annual healthcare cost per person in Iowa is approximately $6,060 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Iowa averages $850/month ($10,200/year). This is below the national average, making Iowa more family-friendly from a financial perspective. Many families in Iowa find that one parent staying home is more cost-effective when two or more children need daycare.
Iowa is an excellent choice for anyone prioritizing affordability. Your dollar stretches 10% further here than the national average. The trade-off may include fewer big-city amenities in some areas, but cities like Des Moines and Cedar Rapids offer a good balance of affordability and quality of life.
See all Iowa financial calculators:
Iowa (IA) has a cost of living index of 90, meaning it is 10% cheaper than the US average. Housing is the biggest factor with an index of 72. The median rent is $850/month and the median home price is $215,000. Iowa ranks #12 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Iowa is approximately $82,160/year ($6,847/month). For a family of four, aim for $139,040/year. This covers housing at 30% of income, groceries ($380/mo), transportation, healthcare, and a 15% savings rate. The median household income in Iowa is $63,200.
The median rent for a one-bedroom apartment in Iowa is approximately $850/month. A two-bedroom averages $1,148/month. Rent varies significantly by city: Des Moines, Cedar Rapids, Davenport are the most popular metro areas. Housing in Iowa is affordable compared to the national average.
Iowa is an excellent choice for affordability. With a cost of living 10% below the national average and median rent of just $850/month, your money goes significantly further here. Top cities include Des Moines, Cedar Rapids, Davenport.
The most affordable areas in Iowa are typically smaller cities and rural areas away from the major metros. Within Iowa, costs can vary 20-40% between the most expensive city (Des Moines metro) and more affordable areas. Sioux City and Iowa City tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Iowa for a single person is approximately $380 ($950 for a family of four). Iowa food costs are 5% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Iowa is approximately $125. Total utilities (electric, gas, water, internet) average $275/month. Iowa utilities are 0% below the national average. Utility costs are manageable for most households.
Iowa has a state income tax rate of 6%. On the median household income of $63,200, that is approximately $3,792/year in state income tax. This is a moderate rate near the national average.