Iowa towns and cities offer a superior quality of life at a price that won’t break the bank.
From well-known names like Davenport to hidden gems like Muscatine, Iowa offers extreme value for the price.
Looking for an affordable yet pleasing place to live? Look no further than these Iowa cities.
Affordable Iowa Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Ottumwa | $121,142 |
| 2 | Burlington | $121,736 |
| 3 | Clinton | $124,080 |
| 4 | Fort Dodge | $130,610 |
| 5 | Waterloo | $151,752 |
| 6 | Mason City | $151,969 |
| 7 | Marshalltown | $170,283 |
| 8 | Muscatine | $184,117 |
| 9 | Davenport | $187,043 |
| 10 | Sioux City | $191,226 |
1. Ottumwa - $121,142
Winning the title of the most affordable housing market in Iowa, the typical Ottumwa home costs just over $120,000. But don’t let the low home prices make you think “low quality.” This city offers a variety of cuisine from down-home American to Latin to Asian, plus art galleries, an air museum, and Native American heritage centers. Estimated monthly payments for the average home in Ottumwa run just $993
2. Burlington - $121,736
Burlington, Iowa, nestled along the Mississippi River, blends history with modern charm. With a population of around 25,000, the city boasts historic architecture, including Snake Alley, the world's crookedest street. Riverside parks, cultural events, and a vibrant downtown contribute to Burlington's inviting atmosphere. Buying a home here comes at an average estimated monthly cost of $998.
3. Clinton - $124,080
Also located on the Mississippi River, Clinton is known for its historic brick buildings, scenic river views, parks, and cultural events such as Dutch Days, the Lyons Farmers Market, and the Main Avenue Craft Show, plus bike and bluegrass festivals. Homes in Clinton remain affordable, with the average property estimated to have a mortgage payment of $1,017 per month.
4. Fort Dodge - $130,610
Fort Dodge, Iowa, a city of approximately 25,000, combines historical significance with modern amenities. Home to the Blanden Memorial Art Museum and the Fort Museum and Frontier Village, it offers cultural experiences and an estimated average monthly housing cost of $1,070. Employers in the area include Cargill, CJ Bio America, and Decker Truck Line.
5. Waterloo - $151,752
Waterloo is not short on awards, as it has previously been ranked as one of the Best Small Places for Business and Careers by Forbes, has a Safest Cities designation from the National Council for Home Safety and Security, and is home to USA Today’s #5 best water park in the country. The average home in Waterloo has an estimated monthly price tag of just $1,244.
6. Mason City - $151,969
Mason City offers a great blend of recreational, cultural, and job opportunities. Large companies such as 3M, Principal Financial Group, and Hy-Vee grocery stores offer ample employment. See the last remaining hotel designed by Frank Lloyd Wright, then make a short drive to Clear Lake to see Surf Ballroom, the site of the last concert performed by Buddy Holly, Richie Valens, and J.P. “The Big Bopper” Richardson before the fatal plane crash that inspired the iconic song “American Pie.” The average housing cost? An estimated $1,245 per month.
7. Marshalltown - $170,283
Situated an hour northeast of Iowa’s capital city, Des Moines, Marshalltown offers laid-back small-town living along the banks of the Iowa River. Despite being a short drive from the state capital, the entire city, with a population of around 27,500, is geographically eligible for zero-down USDA loans, making it that much easier to get into a home. The estimated monthly cost of a conventional mortgage for the typical home in Marshalltown is an affordable $1,395.
8. Muscatine - $184,117
With its origins dating back to the 1830s, Muscatine, a city of around 24,000, sits peacefully along the Mississippi River. The city has gained some fame from Mark Twain’s writings, as the author makes mention of the town. Today, Muscatine is a center for manufacturing and agriculture. Buying a home in Muscatine is wallet-friendly, with an estimated average cost of $1,509 per month.
9. Davenport - $187,043
The biggest city on the list is Davenport, with a population of around 100,000. Attractions include Vander Veer Botanical Park, Bix Biederbecke Memorial Jazz Festival, and Figge Art Museum. But one of the area’s most well-known features is its picturesque riverfront along the Mississippi River. Despite these amenities, the average house in Davenport has an estimated monthly cost of just $1,533.
10. Sioux City - $191,226
Though Sioux City is the fourth-largest city in Iowa, with a population topping 87,000, it still maintains affordable home prices. Bordering Nebraska and South Dakota, the city is known as a meeting point for residents of the three states thanks to its parks, museums, and theatres. The average cost to buy a home in Sioux City? A very reasonable $1,567 per month.
Get Pre-Approved for Your Iowa Home
Many towns and cities across Iowa are affordable for just about any budget. From larger population centers like Davenport and Sioux City to rural communities like Marshalltown, there’s somewhere for everyone to call home. See what home price you qualify for by requesting your pre-approval today.
Methodology
To find the 10 most affordable housing markets in Iowa, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
