Best Affordable Places to Live in Iowa in 2025
By Lauren Ward
(Last Updated – 03/2025)
Iowa, the Hawkeye state, is known for its corn fields and state fair. It’s home to a population of about 3.2 million people and has a strong economy with just a 3.2% unemployment rate (compared to 4.1% nationwide as of December 2024). The cost of living is also 10.3% lower than the country’s average. Check out the best places to live in Iowa, whether you’re looking broadly or want to find the spots most suitable to families, seniors, or young professionals.
Best Places to Live in Iowa
There are plenty of options to choose from when looking for the best places in Iowa to live. Some cities, like Des Moines and Davenport, may be especially well-suited to working professionals and young families, particularly in more affordable surrounding areas. Other parts of the state are more peaceful and affordable for those who like the quiet life, such as Iowa Falls.
💡 Quick Tip: SoFi’s Lock and Look + feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.
Best Affordable Places to Live in Iowa
Ready to discover the best affordable places to live in Iowa? We’ve got you covered with these options.
1. Waterloo
Photo credit: iStock/DenisTangneyJr
Waterloo can be an inviting place for first-time homebuyers, as well as renters looking for a reasonably priced place to call home.
Population: 66,606
Median Household Income: $56,344
Cost of Living: 82%
Average Rent Price: $850
Home Price-to-Income Ratio: 2.47
2. Davenport
Photo credit: iStock/DenisTangneyJr
Davenport is an affordable area that has become increasingly popular and is the largest city in the Quad Cities — a region of four cities across both Iowa and Illinois. You’ll find plenty of entertainment and breweries in Davenport, along with one of the nation’s largest St. Patrick’s Day parades.
Population: 100,354
Median Household Income: $64,497
Cost of Living: 85% of U.S. average
Average Rent Price: $950
Home Price-to-Income Ratio: 2.62
6. Sioux City
Photo credit: iStock/BergmannD
Sioux City is in northwestern Iowa and has an attractively low cost of living. The city is steeped in natural history and includes hands-on attractions like a fossil dig site replica, the LaunchPAD Children’s Museum, and the Sergeant Floyd River Museum.
Population: 85,727
Median Household Income: $65,473
Cost of Living: 85% of U.S. average
Average Rent Price: $1,200
Home Price-to-Income Ratio: 2.75
Best Places to Live in Iowa for Families
Looking for the best places to live in Iowa for families? We’ve picked three affordable options across the state.
1. Waukee
Photo credit: iStock/Jacob Boomsma
A suburb of Des Moines, Waukee is one of the top spots for families in the state. It’s got family favorites like a movie theater and bowling alley, as well as a robust parks system for outdoor play time.
Population: 31,645
Median Household Income: $106,728
Cost of Living: 91% of U.S. average
Average Rent Price: $2,000
Home Price-to-Income Ratio: 3.22
2. Grimes
Also near Des Moines, Grimes is perfect for families who love to experience unique activities together. It has arcades, indoor rock climbing, and a family-friendly raceway. Parents also appreciate the town’s well-rated public school system.
Population: 16,362
Median Household Income: $104,497
Cost of Living: 91% of U.S. average
Average Rent Price: $1,500
Home Price-to-Income Ratio: 3.24
3. North Liberty
North Liberty is a suburban community located less than 20 minutes outside of Iowa City. The town’s Centennial Park hosts a major blues and barbecue festival each summer, and there’s also an active outdoors scene in the winter time. The family can enjoy seasonal activities like ice fishing, skating, and sculpture walks.
If you’re considering moving to North Liberty and buying a home, it could be helpful to browse tips on how to qualify for a mortgage.
Population: 21,345
Median Household Income: $103,933
Cost of Living: 88% of U.S. average
Average Rent Price: $1,350
Home Price-to-Income Ratio: 2.79
Recommended: Different Types of Mortgage Loans
Best Places to Live in Iowa for Young Adults
Young adults have plenty of places to choose from across Iowa, balancing both work and play. Here are our top picks.
1. Des Moines
Photo credit: iStock/f11photo
Young adults looking for strong job opportunities will appreciate the low unemployment rate in Des Moines, with a significant proportion of jobs in the health care and financial sectors. The city has a thriving brewery scene as well as a huge network of hiking, jogging, and biking trails.
If you are shopping for your first home, make sure you understand the difference between mortgage prequalification and preapproval.
Population: 210,381
Median Household Income: $63,966
Cost of Living: 93% of U.S. average
Average Rent Price: $1,125
Home Price-to-Income Ratio: 3.12
2. Tiffin
Young professionals who want a charming small town feel should consider Tiffin. It’s just outside of Cedar Rapids, and the nearby F.W. Kent County Park is a prime spot for outdoor recreation enthusiasts.
If you’re considering putting down roots in Tiffin, the town’s affordability means that the average home still shouldn’t require a jumbo mortgage loan.
Population: 6,325
Median Household Income: $106,034
Cost of Living: 89.6% of U.S. average
Average Rent Price: $1,386
Home Price-to-Income Ratio: 2.93
3. Clive
Clive is located just outside of Des Moines. Young adults will enjoy the nightlife in local breweries and bars. You’ll also find outlets for your hobbies, thanks to spots to pursue swimming, art, and more.
Population: 19,005
Median Household Income: $131,082
Cost of Living: 91% of U.S. average
Average Rent Price: $1,275
Home Price-to-Income Ratio: 3.09
Recommended: Cost of Living by State
Best Places to Live in Iowa for Retirees
Looking for the best places to live in Iowa for seniors? Here are three affordable picks to consider.
1. Marion
Photo credit: Wikimedia Commons/
James.Heires , Creative Commons Attribution-ShareAlike 4.0 International
Seniors account for almost 20% of the adult population in Marion, making it a great place to retire. Plus, the city organizes plenty of activities for this age group, including games, fitness, and dancing.
Population: 42,213
Median Household Income: $87,105
Cost of Living: 83% of U.S. average
Average Rent Price: $775
Home Price-to-Income Ratio: 2.92
2. Keokuk
Photo credit: Flickr/Jimmy Emerson, DVM , Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic
This Mississippi River town is nestled close to the Illinois border and within two hours by car from Iowa City and Cedar Rapids, which means both entertainment and major health care centers are within reach. Home prices in Keokuk tend to be extremely low.
Population: 9,513
Median Household Income: $49,340
Cost of Living: 82% of U.S. average
Average Rent Price: $1,100
Home Price-to-Income Ratio: 1.65
3. Windsor Heights
Photo credit: Wikimedia Commons/Mikjones24 , Creative Commons Attribution-ShareAlike 4.0 International
For retirees who want to stay in the Des Moines area, Windsor Heights is a great suburban option. It’s just a 10 minute drive away, and it offers a small-town feel with plenty of cafes and parks.
Population: 5,067
Median Household Income: $89,083
Cost of Living: 89% of U.S. average
Average Rent Price: $1,295
Home Price-to-Income Ratio: 3.03
Recommended: Home Loan Help Center
Best Places to Live in Iowa Near the Water
Iowa is full of majestic rivers and lakes. Here are the top spots for moving closer to the water, either as your full-time home or as an affordable weekend getaway.
1. Burlington
Photo credit: iStock/EJ_Rodriquez
Located on the banks of the Mississippi River, Burlington is an affordable town with an accessible waterfront. Take in sweeping river views from the bluffs of Mosquito Park, or jump in a kayak or canoe from one of the many public boat ramps.
Are you in the market for a home in Burlington? Consider going through the mortgage preapproval process, which can help give you an edge.
Population: 23,565
Median Household Income: $55,274
Cost of Living: 80% of U.S. average
Average Rent Price: $750
Home Price-to-Income Ratio: 2.09
2. Waterloo
Photo credit: iStock/DenisTangneyJr
Explore the Cedar River in Waterloo both on land and water. There are calm areas for canoeing and kayaking, or you can opt for a power boat to get around. There’s also a thriving arts scene anchored by the nearby Cedar Rapids Museum of Art.
Population: 66,606
Median Household Income: $56,344
Cost of Living: 82% of U.S. average
Average Rent Price: $850
Home Price-to-Income Ratio: 2.47
3. Iowa Falls
Iowa Falls sits on the Iowa River with plenty of areas to explore by foot, car, canoe, or kayak. Fishing, hiking, camping, and paddling are all popular pursuits. One of the city’s best river vantage points is from the historic swinging bridge in Assembly Park.
Population: 5,002
Median Household Income: $53,051
Cost of Living: 74.1% of U.S. average
Average Rent Price: $1,100
Home Price-to-Income Ratio: 2.26
💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
The Takeaway
There are plenty of affordable options when searching for the best place to live in Iowa, including suburban areas close to busy cities and pretty river towns. Not certain Iowa is the spot? Explore a guide to the cost of living by state for more options.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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FAQ
Where is the cheapest suburban place to live in Iowa?
There are many affordable suburbs to enjoy in Iowa. Clive, Tiffin, and Waukee are a few of the options to consider that provide a tranquil setting close to a major city.
Where is the nicest place to live in Iowa?
It depends what you’re looking for. There are plenty of bustling urban areas, like Des Moines and Davenport. But you may also enjoy a charming small town such as Tiffin or living close to the water in Iowa Falls.
How much money do you need to live comfortably in Iowa?
The amount of money you need to live comfortably in Iowa varies based on where you live and work. In Des Moines, in a family of four with one working adult and two children, the adult would need to earn an average of $38.82 per hour, or about $80,00 a year, according to the Massachusetts Institute of Technology Living Wage Calculator.
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