Iowa cost of living
Can you afford to live in the Hawkeye State?
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Considering a move to Iowa means weighing the real costs of daily life in the Midwest. Newcomers are often drawn by the promise of lower housing prices and a slower pace, but understanding monthly expenses is essential before deciding if Iowa is a good fit for you and your family.
To determine the cost of living in Iowa, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Iowa spend $47,833 each year on goods and services, on average.
Jump to insightThe median rent in Iowa is $966, versus the national median rent of $1,639.
Jump to insightResidents in Iowa spend $227.32 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.89 in Iowa.
Jump to insightRecent data shows that employees in Iowa pay $2,012 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Iowa
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Iowa was $47,833 in 2023. This total reflects what Iowa residents typically spend each year on major categories like housing, health care, groceries, gas, energy and other personal needs.
Here’s a breakdown of the largest spending categories in Iowa:
| Category | Annual per-capita cost in Iowa |
|---|---|
| Housing and utilities | $7,743 |
| Health care | $8,224 |
| Food and beverages for off-premises consumption | $4,067 |
| Gasoline and other energy goods | $2,000 |
| All other personal consumption expenditures | $25,798 |
| Total cost | $47,833 |
Housing costs in Iowa
Housing is the biggest monthly expense for most Iowa families. As of 2025, the average rent in Iowa is $966, which is lower compared with the U.S. average of $1,639. However, your exact costs will depend on location, home size and local demand. According to the U.S. Census Bureau’s 2023 American Community Survey, typical monthly rents in Iowa break down as:
- One-bedroom rent: $741
- Two-bedroom rent: $959
- Three-bedroom rent: $1,166
- Four-bedroom rent: $1,274
For those planning to purchase, the median home price in Iowa is $253,400, which is much less compared with the national median of $446,638.
Property taxes are also a factor for homeowners. Iowa’s effective property tax rate is 1.23%, which puts it at No. 11 for highest effective property tax rates in the U.S.
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Food costs in Iowa
The amount you spend on groceries in Iowa is influenced by your shopping habits and where you live. The latest U.S. Census data shows the average weekly grocery bill in Iowa is $227.32, compared with $270.21 across the U.S.
Grocery prices may be more favorable in smaller Iowa towns, where local markets and bulk buying can stretch your budget. In larger cities and college towns, you might pay more if you frequently dine out or prefer specialty stores — but families who cook at home and plan ahead often notice real savings.
Transportation costs in Iowa
Drivers in Iowa pay an average of $2.89 per gallon for regular gas — use this to plan your monthly transportation budget, especially if you commute or travel frequently. For insurance, the average premium for full auto coverage in Iowa is $897.79, compared with the national average of $1,258.
Health care costs in Iowa
The average annual employee contribution for employer-provided health insurance in Iowa is $2,012. Employers pay the remaining $6,005 toward the total premium of $8,017.
Across the country, the average worker pays $1,640 out of a total premium of $8,182.
Utility costs in Iowa
On average, an Iowa household spends $112.60 per month on electricity, versus $136.84 for the typical U.S. home. For heating, natural gas runs $9.03 per thousand cubic feet, compared with $12.92 nationwide.
FAQ
Does Iowa have a high cost of living?
No, Iowa does not have a high cost of living compared with the national average. Most families find that living expenses in Iowa — especially housing and rent — are lower than what you’ll find in many other states.
Is Iowa a good place to live?
Yes, Iowa is a good place to live if you value affordable living and accessible rental options. Many people choose Iowa for its lower overall costs and its welcoming communities. The cost of living is lower than the national average, making it easier for families and individuals to manage their budgets.
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Is Iowa good for renters?
Yes, Iowa is good for renters. Rent is more affordable there than in many states, and it is easier to find available rental units in many Iowa communities. However, Iowa offers fewer tenant protections than some other states, so renters should be aware of their rights and responsibilities before signing a lease.
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:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
