Iowa cost of living
Moving to a new state is a mix of emotions — it can be full of new possibilities but also challenging and a bit scary. While a fresh start offers exciting opportunities and experiences, it's important to consider the practical side of things, too. Building new friendships, finding support and getting to know your way around takes time.
Moving can also be costly and emotionally draining. Whether you're relocating to Iowa for a job, a change of scenery or any other reason, understanding the cost of living in the state is crucial for a smooth transition.
The median rent in Iowa is $1,066.67, versus the national median rent of $1,529.01.
Jump to insightResidents in Iowa spend $227.32 weekly on food at home and $81.26 on food out.
Jump to insightAs of publishing, the average price per gallon of regular gas is $3.15 in Iowa.
Jump to insightRecent data shows that employees in Iowa pay $1,845 annually for employee-sponsored health insurance coverage.
Jump to insightHousing costs in Iowa
According to recent data from Zillow, the median rent in Iowa is $1,066.67, while the national median rent is $1,529.01.
Data from the U.S. Census Bureau shows rent prices in Iowa broken down by home size. As of publishing, one-bedroom apartments in Iowa had a median cost of $720 per month, and the two-bedroom median cost was $914 per month. Three- and four-bedroom homes had median costs of $1,084 and $1,132, respectively.
As of publishing, the median home price in Iowa is $230,000, according to Redfin. The U.S. median home price is $436,000.
In the first quarter of 2024, the Iowa City, Des Moines and Council Bluffs metros had higher median home prices than the rest of the state, while Cedar Rapids, Davenport and Waterloo-Cedar Falls metros had comparatively low median home prices, according to the National Association of Realtors (NAR).
Iowa ranks No. 10 for highest effective property tax rates in the nation, according to the most recent Tax Foundation data, at 1.52%.
» COMPARE: Best moving companies
Transportation costs in Iowa
According to recent data from AAA, the average price per gallon of regular gas in Iowa is $3.15, compared with the U.S. average of $3.46.
The most recent National Association of Insurance Commissioners data shows that the average auto insurance premium (liability, collision and comprehensive coverage combined) in Iowa is $841.62, versus the national average of $1,189.50.
Public transportation costs
As of publishing, public transportation is available in all 99 counties throughout Iowa. Bus fares in Des Moines typically start at $1.75 for adults and $0.75 for children. Currently, though, bus fares are free in Iowa City as part of a two-year program.
Food costs in Iowa
According to recent census data, the average spent on food to prepare at home each week in Iowa is $227.32, compared with the U.S. average of $270.21 at the time. Iowa residents spend an average of $81.26 weekly on food prepared outside the home, compared with the U.S. average of $109.21.
Health care costs in Iowa
The most recent KFF data shows that, on average, employer-sponsored health insurance cost Iowa employees $1,845 annually, with employers covering the remaining $5,588 of the $7,433 total cost.
Nationwide, the average employee contribution was $1,637 out of a total premium of $7,590.
Utility costs in Iowa
According to the most recent data from the Energy Information Administration, the average monthly electric bill in Iowa is $116.70, versus $135.25 countrywide.
Recent EIA data also shows that natural gas in Iowa costs $10.30 per thousand cubic feet, compared with $13.25 nationally.
FAQ
Does Iowa have a high cost of living?
As of publishing, Iowa has a fairly low cost of living in terms of housing, food, utilities and health care.
What are the most expensive cities in Iowa?
According to first-quarter 2024 data from NAR, Iowa City, Des Moines and Council Bluffs are the most expensive metro areas in the state.
How much do I need to make to live in Des Moines?
Our 2024 story on income required to live in various U.S. cities indicated that a single adult would need an annual salary of $44,397 or a full-time hourly rate of $21.35 to live comfortably in Des Moines.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Zillow, "Housing Data." Accessed May 14, 2024.
- Redfin, "Redfin Data Center." Accessed May 14, 2024.
- Tax Foundation, "Where Do People Pay the Most in Property Taxes?" Accessed May 14, 2024.
- United States Census Bureau, "Week 63 Household Pulse Survey: October 18 - October 30." Accessed May 14, 2024.
- AAA Gas Prices, "State Gas Price Averages." Accessed June 14, 2024.
- National Association of Insurance Commissioners, "2020/2021 Auto Insurance Database Report." Accessed May 14, 2024.
- KFF, "Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance." Accessed May 14, 2024.
- U.S. Energy Information Administration, "2022 Average Monthly Bill- Residential." Accessed May 14, 2024.
