Thinking about moving to the Midwest? Iowa is often praised for its affordability, making it a hidden gem for individuals and families seeking financial stability and a good quality of life. The cost of living in Iowa is significantly below the national average, covering everything from housing and groceries to healthcare and taxes. This article will break down all major living expenses and help you determine whether Iowa is the right fit for your lifestyle and budget.
Housing: The Foundation of Affordability
One of the most appealing aspects of Iowa is its low housing costs. Whether you’re planning to buy or rent, you’ll find favorable prices across most cities in the state.
The median home price in Iowa hovers around $177,000, far below the U.S. median of over $400,000. In places like Des Moines, Cedar Rapids, or Davenport, it’s possible to find spacious homes in good neighborhoods for under $250,000.
For renters, the average cost of a two-bedroom apartment sits close to $995 per month, while one-bedrooms often fall below $800. These affordable rates contribute significantly to the low cost of living in Iowa.
Utilities: Efficient and Inexpensive
Utility bills in Iowa are generally lower than in coastal or highly urbanized states. On average, residents spend around $420 to $450 per month on essential utilities like electricity, water, heating, internet, and garbage.
Electricity rates in Iowa are especially reasonable due to the state’s investment in wind energy and renewable resources. That’s a win for both your wallet and the environment.
Food and Groceries: Easy on the Wallet
Feeding a family in Iowa is more affordable than you might expect. The monthly grocery bill for a single adult is approximately $345, compared to the national average of $355.
Local access to fresh produce and meat—thanks to the state’s strong agricultural economy—means residents enjoy both affordable prices and high-quality food. Farmers markets and co-ops are abundant, especially during spring and summer.
Dining out is also reasonably priced. A casual meal at a local restaurant might cost $12–15, while a three-course dinner for two at a mid-range restaurant typically runs about $50–60.
Transportation: Budget-Friendly Mobility
Another factor that contributes to the low cost of living in Iowa is affordable transportation. Gas prices remain relatively stable, averaging $3.26 per gallon, which is below the U.S. average.
For those using public transportation, options like the Des Moines Area Regional Transit Authority (DART) keep things affordable. A single adult fare is just $1.75, and monthly passes cost around $48.
Additionally, Iowa’s manageable traffic and shorter commute times mean residents spend less time (and gas) in their cars.
Healthcare: Affordable Access
Healthcare in Iowa is both accessible and budget-conscious. The average individual spends about $6,400 annually, including insurance premiums, medical visits, and prescriptions.
Iowa’s healthcare system ranks well nationally for quality and access. Cities like Iowa City and Des Moines are home to top-rated hospitals and clinics, making healthcare both affordable and reliable.
The overall affordability of healthcare is a big factor in reducing the cost of living in Iowa, especially for families and seniors.
Childcare: Reasonably Priced for Families
Childcare is often a big-ticket item in any state, but Iowa keeps costs relatively modest. The average cost of center-based daycare for one child is around $8,600 per year, or about $715 per month.
That’s significantly more affordable compared to national figures, where childcare can easily exceed $1,200 monthly in more expensive states. Iowa families benefit from various programs and subsidies that further reduce childcare expenses.
Education: Public Schools and Universities
Iowa's public education system consistently ranks among the top in the nation. If you have school-aged children, the quality of education is a major perk. Public schools are well-funded, especially in suburban districts around Des Moines, West Des Moines, and Iowa City.
Higher education is also affordable. In-state tuition at schools like the University of Iowa and Iowa State University averages about $9,500 per year, which is below national averages for four-year institutions.
Taxes in Iowa: Understand Your Obligations
Iowa has a progressive income tax system with rates ranging from 0.33% to 8.53%, depending on your income level. While the top bracket is higher than in some neighboring states, most residents fall into lower or middle tax brackets.
Sales tax in Iowa is 6%, with some local governments adding up to 1%. Property taxes vary by county, but they’re generally reasonable—especially in rural and suburban areas.
Understanding Iowa’s tax landscape helps put the total cost of living in Iowa into perspective and allows for smarter budgeting.
Entertainment and Recreation: Affordable Fun
Whether you enjoy hiking, museums, or nightlife, Iowa offers an array of entertainment options without draining your bank account. State parks are either free or low-cost, local concerts and events are frequently community-sponsored, and even professional sporting events are more budget-friendly than in larger metropolitan areas.
For example, a movie ticket averages just $10, and many museums have free or donation-based entry days. These little perks make Iowa not just affordable, but enjoyable.
How Inflation Affects Iowa
Like everywhere else, Iowa hasn’t been immune to inflation. Over the last three years, Midwest residents have experienced an increase in living costs of 17%, translating to roughly $22,800 in additional annual expenses for a typical household.
However, because Iowa’s baseline cost of living is so low, inflation hasn’t hit as hard here as in coastal states. That makes Iowa a relatively safe bet when it comes to economic stability and affordability.
Comparing Iowa with Other States
When comparing Iowa with nearby states like Illinois, Wisconsin, or Minnesota, the difference in affordability becomes even clearer. Iowa's overall cost of living is about 28% lower than the national average, with housing alone being 40–50% less expensive than in major metro areas like Chicago or Minneapolis.
That’s why many people who relocate to Iowa often say they experience an immediate improvement in quality of life without the heavy financial burden.
Planning a Move? Consider Reliable Support
If you’re planning to relocate, whether from within the state or out-of-state, hiring professional Movers can make your transition seamless and stress-free. Local movers know the Iowa market well and can offer packing, transportation, and storage options tailored to your needs.
Many Iowa-based moving companies offer flexible pricing and services, making them an affordable part of your relocation budget.
Is Iowa Right for You?
With low housing costs, affordable healthcare, manageable transportation expenses, and access to quality education, Iowa stands out as one of the most cost-effective states in the U.S.
Whether you're a young professional, growing family, or retiree, the cost of living in Iowa allows you to stretch your dollar further while enjoying a high quality of life.
Plus, the strong sense of community, low crime rates, and central U.S. location make it a practical and peaceful place to call home.
Final Thoughts
The cost of living in Iowa remains one of the state’s strongest selling points. While inflation has nudged up prices across the board, Iowa’s overall affordability continues to shine when compared to the national average.
From low housing and utility costs to budget-friendly healthcare and groceries, Iowa offers a compelling case for anyone seeking value, stability, and community. With the support of professional Movers, transitioning to life in Iowa can be a smooth and rewarding experience.
