10 Most Affordable Housing Markets in Iowa

Iowa towns and cities offer 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.

1. Ottumwa
2. Burlington
3. Clinton
4. Fort Dodge
5. Waterloo
6. Mason City
7. Marshalltown
8. Davenport
9. Muscatine
10. Sioux City

1. Ottumwa

*Payments mentioned do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend.

Winning the title of the most affordable housing market in Iowa, the typical Ottumwa home costs just over $100,000. 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.

2. Burlington

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 crookedest street in the world. Riverside parks, cultural events, and a vibrant downtown contribute to Burlington's inviting atmosphere.

3. Clinton

Located on the Mississippi river, Clinton is known for its historic brick buildings, scenic river views, parks, and cultural events such as Dutch Days, Lyons Farmers Market, and Main Avenue Craft Show, plus bike and bluegrass festivals.

4. Fort Dodge

Fort Dodge, Iowa, a city of approximately 24,000, combines historical significance with modern amenities. Home to the Blanden Memorial Art Museum and the Fort Museum and Frontier Village, it offers cultural experiences. Employers in the area include Cargill, CJ Bio America, and Decker Truck Line.

5. Waterloo

Waterloo is not short on awards, as it has won the #35 spot for Best Small Places for Business and Careers by Forbes, a Safest Cities designation from the National Council for Home Safety and Security, and is home to USA Today’s #2 best water park in the country.

6. Mason City

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 in the world, 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 “The Day The Music Died.”

7. Marshalltown

With home prices in the mid-$150s, Marshalltown would be an affordable home base. The entire city is geographically eligible for zero-down USDA loans, making getting into a home that much easier.

8. Davenport

One of the bigger cities 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 city’s most well known features is its picturesque riverfront along the Mississippi River.

9. Muscatine

Down the river from Davenport is Muscatine, a smaller town of around 23,000. 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.

10. Sioux City

Though Sioux City is a larger city in Iowa, it still offers affordable home prices. Bordering Nebraska and South Dakota, the city is known as a meeting point for residents of the three states.

Get pre-approved for your Iowa home

Many towns and cities across Iowa are affordable for just about any budget. See what home price you qualify for by requesting your pre-approval from a reputable lender.

Methodology

To find the 10 most affordable housing markets in Iowa, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. 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 using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per rates from mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population in the U.S. per Zillow’s report.