Living in Iowa: Income, Housing, Taxes & Cost of Living (2026)
By Wealthvieu
·
Updated
Table of Contents
Iowa at a Glance
| Metric |
Value |
National Rank |
| Population (2024) |
3.2 million |
31st |
| Median household income |
$72,429 |
26th |
| Median home price |
$210,000 |
Well below average |
| Cost of living index |
88 |
8th lowest |
| State income tax |
3.8-6.0% (transitioning to flat 3.9%) |
Declining |
| Sales tax (state + local avg) |
6.94% |
Average |
| Property tax (effective rate) |
1.52% |
Above average |
Income and Housing
| City/Metro Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Des Moines |
$75,200 |
$255,000 |
$1,100 |
| Iowa City |
$62,400 |
$275,000 |
$1,150 |
| Cedar Rapids |
$68,200 |
$210,000 |
$1,000 |
| Davenport |
$60,400 |
$175,000 |
$900 |
| Sioux City |
$62,800 |
$185,000 |
$850 |
| Ames |
$55,400 |
$260,000 |
$1,050 |
| Waterloo |
$56,800 |
$160,000 |
$800 |
Iowa Pros and Cons
| Financial Pros |
Financial Cons |
| Very affordable (88 index) |
Above-average property taxes (1.52%) |
| Strong insurance/finance job market (Des Moines) |
Income tax still relatively high (transitioning) |
| Low unemployment (consistently below national avg) |
Cold winters = heating costs |
| Affordable housing |
Limited metro areas |
| Good public schools |
Brain drain of young graduates |
| No Social Security tax |
Rural areas losing population |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
