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If the good people of Iowa could pay for everything in corn, they would be super rich and life would be super affordable. But since they can't, HomeSnacks calculated the most affordable places to live in Iowa for 2020.
How did we determine the most affordable places to live in Iowa? We consulted the latest Census data on cost of living.
Most Iowans have never really experienced unemployment. The crossroads of the Midwest has managed to stay ahead of the national unemployment rate holding strong at 2.4%. And this is because we can thank Iowa for anything corn and soybeans. But did you know that Iowa is home to Pella windows and Winnebago? Coincidentally we can thank Iowa's education institutions like the University of Iowa for producing smart, hard-working individuals who want to make Iowa available and affordable for all.
It's simple economics, folks. Good jobs increase median incomes which translates to most people being able to live in our top most affordable Iowa places. Have we piqued your interest? If you want to know where the most affordable places in Iowa are located, keep reading.
Ask any Iowan, they will say, hands down, that their corner of the world is the best. Heck, there's a reason The Hawkeye State is the 30th most populous in the country.
Yes, we think it has a little something to do with the great people and strong jobs in agriculture; however, to the economically savvy, to truly be the best, the state must have the nicest, most affordable places to call home.
What's the most affordable place to live in Iowa? That would be Denison according to the most recent Census data on incomes, rent, and home prices..
So, if you care about home values and cost of living, take a look at the list below to see where your Iowa dollar will go the furthest.
And if you already knew these places were cheap, check out some more reading about Iowa and the cheapest places in the country:
The 10 Cheapest Places To Live In Iowa For 2020
Denison is a city in Crawford County, Iowa, United States, along the Boyer River. The population was 8,298 at the 2010 census. It is the county seat of Crawford County.
The median income in Denison comes in at $53,074 and the median home value is $90,700 for 2020.
Iowa Falls is a city in Hardin County, Iowa, United States. Iowa Falls is the home of Ellsworth Community College. It is also a regional transportation center, located along U.S. Routes 20 and 65 and the Canadian National and Union Pacific Railroads. The population was 5,238 at the 2010 census. A landmark in the city is its movie theater. Built as the Metropolitan Opera House in 1899, it presented plays, operas, and vaudeville in the town during the first half of the twentieth century, and today is listed on the National Register of Historic Places.
The median income in Iowa Falls comes in at $49,521 and the median home value is $87,400 for 2020.
Clarinda is a city in and the county seat of Page County, Iowa, United States. It is located in Nodaway Township. The population was 5,572 in the 2010 census, a decline from the 5,690 population in the 2000 census.
The median income in Clarinda comes in at $47,250 and the median home value is $90,400 for 2020.
Manchester is a city in Delaware County, Iowa, United States. The population was 5,179 at the 2010 census. It is the county seat of Delaware County. Manchester is located at the intersection of U.S. Highway 20 and State Highway 13, and is the largest community in Delaware County.
The median income in Manchester comes in at $52,612 and the median home value is $108,800 for 2020.
Maquoketa is a city in Jackson county in the U.S. state of Iowa. Located on the Maquoketa River, it is the county seat of Jackson County.
The median income in Maquoketa comes in at $44,307 and the median home value is $87,800 for 2020.
Marshalltown is a city in, and the county seat of, Marshall County, Iowa, United States. The population was 27,552 in the 2010 census, compared to 26,009 in 2000.
The median income in Marshalltown comes in at $50,612 and the median home value is $95,900 for 2020.
Webster City is a city in Hamilton County, Iowa, United States. The population was 8,070 at the United States 2010 Census. It is the county seat of Hamilton County. Webster City is known as 'Boone River Country', as the Boone River meanders along the east side of the city.
The median income in Webster City comes in at $48,912 and the median home value is $94,200 for 2020.
Fort Madison is a city and a county seat of Lee County, Iowa, United States along with Keokuk. Of Iowa's 99 counties, Lee County is the only one with two county seats. The population was 11,051 at the 2010 census. Located along the Mississippi River in the state's southeast corner, it lies between small bluffs along one of the widest portions of the river.
The median income in Fort Madison comes in at $42,282 and the median home value is $79,500 for 2020.
Knoxville is a city in Marion County, Iowa, United States. The population was 7,313 at the 2010 census, a decrease from 7,731 in the 2000 census. It is the county seat of Marion County. Knoxville is home of the National Sprint Car Hall of Fame & Museum, located next to the famous Knoxville Raceway dirt track.
The median income in Knoxville comes in at $45,678 and the median home value is $92,600 for 2020.
Keokuk is a city and a county seat of Lee County, Iowa, United States, along with Fort Madison. It is also the most southerly city in Iowa. The population was 10,780 at the 2010 census. The city is named after the Sauk chief Keokuk, who is thought to be buried in Rand Park. It is located in the extreme southeast corner of Iowa where the Des Moines River meets with the Mississippi. It is located at the junction of U.S. Routes 61, 136 and 218. Just across the rivers are the towns of Hamilton and Warsaw, Illinois, and Alexandria, Missouri.
The median income in Keokuk comes in at $39,058 and the median home value is $70,400 for 2020.
How We Determined The Most Affordable Places To Live In The Hawkeye State For 2020
The two most important things to think about when it comes to being able to afford if you can live comes down to:
- How much do money do I make?
- How much do I have spend to live there?
You need to understand your costs in the context of how much money you make.
For example, if the median household earns $100,000 and spends $40,000 on housing it's actually cheaper to live there than a place with a median income of $50,000 and housing costs of $21,000. You might spend more on housing, but you have more money overall to play with.
With that example in mind, we derived several statistics from the latest Census American Community Survey 2014-2018 around incomes and costs. They are:
- Median Home Price / Median Income (lower is better)
- Median Income / Median Rent (Higher is better)
- Median Home Price
We added simply median home price because high home prices generally correlate with higher expenses for all costs related to homes (heating, electricity, etc).
You can then compare these metrics in each of the places in Iowa to figure out which is the least expensive.
What you are left with is a "Cost of Living Index" by taking the average rank of each of these metrics for each city.
So we used that cost of living index in order to rank all of the 78 places in Iowa that have more than 5,000 people.
The place with the lowest cost of living in Iowa according to the data is Denison. You can download the data here.
There You Have It Mr. Or Mrs. Iowa Cheapskate
If you're looking at the cost of living numbers in Iowa, this is an accurate list of the most affordable places to live in Iowa for 2020.
Here's a look at the most expensive cities in Iowa according to the data:
- Iowa City
For more Iowa reading, check out:
Where Are The Most Affordable Places To Live In Iowa?