Cheapest Places to Live in Iowa

 

Key Takeaways:

• Quality of Life: Where people do not need to take on two jobs to pay the bills on time. Where people have a work-life balance.
   
• Affordable Living: The cost of living is lower than the national average.
   
• Budget-Friendly Housing: The lower median home prices, which allow people to save more and earn more.
   

 

Here are the top cheapest places to live in Iowa for the year 2025:

1. Keokuk
    
2. Fort Madison
    
3. Burlington
    
4. Oelwein
    
5. Ottumwa
    
6. Davenport
    
7. Cedar Rapids
    
8. Dubuque
    
9. Des Moines
    
10. Cedar Falls

Iowa, according to US News is ranked 6th in overall rankings for the best states to live in in terms of economy, education, employment, healthcare, and crime. 

Iowa, despite being considered a small state, focuses primary on farming, and agriculture is one of the most ideal states to live in for this year of 2025.

 

If you look at this map from Axios, it will show you the increase of home prices from 1984 to 2024, and surprisingly, ever since then, Iowa has maintained the top 10 states to have the lowest gains.

 

Source: https://www.axios.com/newsletters/axios-des-moines-e8cffbd0-a07f-11ef-b079-05ba2a3fcd83

 

The national average sits at 500% change in home prices, which is 200% more than where Iowa is to date. This just means Iowa has remained one of the ideal states to stay in terms of home prices.

Source: https://www.usnews.com/news/best-states/iowa

 

If you consider relocating this 2025, especially with a low budget, then maybe you should consider Iowa on your list. But the question remains: ‘Where in Iowa should I stay?’

Here, we break down the top 10 cheapest places and where to stay in Iowa:

 

1. Keokuk

Source: https://en.wikipedia.org/wiki/Keokuk,_Iowa

 

• Median Home Value: $80,776
• Median Rent: $639
• Cost of Living: 27.9% below the national average

 

Keokuk is located near the Mississipi River which is ideal for people who love kayaking and who are looking for the cheapest cost of living. This is ideal for families or individuals looking for affordable homes and a reasonable cost of living with job opportunities in healthcare sectors, retail, and service positions.

 

2. Fort Madison

Source: https://www.traveliowa.com/cities/fort-madison-iowa/536/

 

• Median Home Value: $103,390
• Median Rent: $685
• Cost of Living: 27.9% below the national average

Fort Madison is another city located near the Mississippi River. Famous for the first battle of U.S. Troops against Chief Black Hawk, this small town of 10,000+ residents is a hidden gem for people who are looking for a simple yet affordable lifestyle.

 

3. Burlington

Source: https://okobojiwriters.substack.com/p/road-trip-to-burlington

 

• Median Home Value: $115,765
• Median Rent: $800
• Cost of Living: 27.4% below the national average

Burlington is famously known for Snake Alley, the "crookedest street in the world." The city offers a low cost of living, with transportation expenses approximately 39.5% below the national average. Employment industry also focuses more on Manufacturing, Wholesale, Retail and Trade, and Eductation.

 

4. Oelwein

Source: https://www.pinterest.com/pin/oelwein-iowa--29836416265259891/

 

• Cost of Living: 26.9% cheaper than the national average
• Median Home Value: $100,058

Oelwein as it is known, is the “Shop City” later “Hub City’ because the town is primarily the repair location of rail lines because of its railroad history.

 

5. Ottumwa

Source: https://www.gopip.org/economic-development/why-ottumwa-ia

 

• Median Home Value: $149,996
• Median Rent: $592

Ottumwa was the home of the Twin Galaxies arcade, which became the location for arcade competitions therefor eventually getting recognized as the “Video Game Capital of the World." Aside from that, you might want to visit Canteent Lunch in the Alley.

 

6. Davenport

Source: https://www.midwestliving.com/travel/iowa/top-things-to-do-davenport/

 

• Median Home Price: $168,196
• Media Rent Price: $938

Davenport has the Figge Art Museum, Vander Veer Botanical Park and Modern Woodmen park as part of their cultural hubs. They have top notch healthcare facilities and educational opportunities ideal for people starting a family.

 

7. Cedar Rapids

Source: https://cbs2iowa.com/news/local/cedar-rapids-unveils-2025-plans-to-boost-downtown-vibrancy-and-economic-vitality

 

• Median Home Price: $195,000
• Median Rent Price: $764
• Cost of Living: 12.6% lower than national average

Cedar Rapids is home to unique attractions such as the Rapids Museum of Art. This is the place where locals appreciate the 5 seasons and take in the time to appreciate the Midwestern landscape. This place is ideal for people who like to take things slow.

 

8. Dubuque

Source: https://www.kayak.com/Dubuque.26307.guide

 

• Median Home Price: $225,223
• Median Rent Price: $1,000
• Cost of Living: 15.1% lower than national average

With its historic charm and scenic riverfront, Dubuque offers residents a comfortable and affordable lifestyle. The city’s revitalized downtown, cultural attractions, and lower housing prices make it a desirable choice for budget-conscious individuals.

 

9. Des Moines

Source: https://www.catchdesmoines.com/plan/regions/des-moines/

 

• Median Home Price: $200,000
• Median Rent Price: $1,078
• Cost of Living: 36.6% lower than national average

The state capital, Des Moines, is known for the only five domed capitol in the country which is The Iowa State Capitol in Downtown Des Moines. You should also try their best dish which is the Steak de Burgo.

 

10. Cedar Falls

Source: https://iapublication.com/36-hours-in-cedar-falls/

 

• Median Home Price: $263,000
• Median Rent Price: $968.75
• Cost of Living: 15.0% lower than national average

Cedar Falls is home to the University of Northern Iowa, making it a lively and community-driven city. Its reasonable housing prices and moderate cost of living appeal to students, families, and retirees alike.

 

Final Thoughts

The overall cheapest place to stay would be Keokuk with home prices at the average of $80,766 and the cost of living 27.9% lower than the national average; it is an obvious choice. 

Although before finalizing your decision you might want to take a look into other factors such as crime rates, average salary, etc. If what you want is the lower cost of living, then choose Oelwin.

Moreover, the state of Iowa offers affordable places with incredible landscape and culture that a person who likes to live a slow and peaceful life would want to consider.

 

FAQs

Q: What factors contribute to the low cost of living in these Iowa cities?

Affordable housing, lower utility costs, and reduced transportation expenses.

Q: Are there job opportunities in these affordable cities?

Yes, many cities offer jobs in manufacturing, healthcare, education, and service industries.

Q: How does the quality of life compare in these affordable cities?

Residents enjoy a high quality of life, with access to parks, cultural events, and recreational opportunities.

Q: Is affordable housing readily available in these cities?

Yes.

Q: Are these cities suitable for retirees?

These cities offer amenities, healthcare facilities, and community programs tailored to retirees.