What Is the Cost of Living in Iowa?

The cost of living represents the amount of money required to cover basic expenses such as housing, food, transportation, and healthcare in a specific location. Understanding this metric is important for individuals and families considering relocation or managing their finances. This economic indicator provides insight into the purchasing power of income within a particular area. It helps to illustrate how daily necessities translate into financial outlays, influencing budgeting and financial planning decisions.

Iowa’s Overall Affordability

Iowa generally presents a more affordable living environment compared to the national average. The state’s overall cost of living index is approximately 80.1, indicating that expenses are about 20% lower than the national benchmark of 100. This relative affordability positions Iowa as one of the states with lower living costs in the United States. For a single person, annual expenses are estimated at around $43,542, equating to approximately $3,629 per month. Families with children can expect higher annual costs, averaging about $88,966, or $7,412 monthly. While wages have seen gains, increased costs, particularly due to inflation, mean that some households may find it challenging to meet a basic-needs budget.

Detailed Expense Categories

Housing

Housing costs in Iowa are significantly lower than the national average. The state’s housing cost of living index stands at 55.4, indicating that housing expenses are about 45% below the national average. The average home value in Iowa was approximately $211,572 as of August 2023, with a median sale price of $294,950. For renters, the average monthly rent across Iowa is around $966 as of August 2025.

Specific dwelling types vary in cost:
Studio apartments: $860 per month
One-bedroom units: $966
Two-bedroom units: $1,139
Three-bedroom rentals: $1,444 or more per month

Utility expenses, covering electricity, heating, cooling, water, gas, and internet, average approximately $423.88 monthly. More specific breakdowns show:
Energy bills: $109.63
Water: $32
Internet: $50
Natural gas: $73
Phone service: $114

Transportation

Transportation expenses in Iowa are notably below the national average, with a cost of living index of 71.4, which is 28% lower. An individual can expect to spend approximately $5,356 annually on transportation. Gasoline prices in the state are generally comparable to the national average, though fluctuations occur over time and across different regions within Iowa. Public transportation options are available, with an average local transport ticket costing around $1.44 and a monthly pass at about $39.7. For instances requiring taxi services, an 8km ride typically has an average fare of $14.8.

Groceries and Food

Grocery costs in Iowa are slightly lower than the national average, with an index score of 94.4, representing 6% below the national average. A single adult living in Iowa can anticipate an estimated monthly food expense of $334. For households with three children, the monthly grocery bill can exceed $1,000. Dining out expenses vary significantly based on the type of establishment and frequency. Overall, food costs in Iowa generally align with prices found across other regions of the United States.

Healthcare

Healthcare expenses in Iowa are generally considered to be around the national average, with a cost index of 108.2. The average cost for health insurance in the state is approximately $6,216 per person annually. Out-of-pocket medical expenses for residents can range from $284 to $689. While healthcare services like doctor check-ups and dentistry are about 5% lower than the national average.

Miscellaneous Expenses

Beyond the primary categories of housing, food, transportation, and healthcare, various miscellaneous expenses contribute to the overall cost of living. This broad category includes personal care items, entertainment activities, clothing, and other discretionary spending. For a single individual, these miscellaneous costs are estimated at $11,572 annually. Families with children face higher miscellaneous expenses, estimated at $27,723 yearly. While specific breakdowns for each sub-item within this category are not always readily available, these figures encompass a range of expenditures that support daily living and leisure activities.

Regional Cost Variations

The cost of living in Iowa is not uniform across the state, exhibiting notable regional variations. Major metropolitan areas typically have higher costs compared to smaller towns and rural communities. These differences are influenced by factors such as population density, local job market strength, and the availability of amenities.

Housing costs demonstrate significant variations across different cities. For instance, the average home value in Des Moines was approximately $192,796, while in Iowa City it was higher at $277,992 as of March 2023. In contrast, cities like Davenport and Sioux City had average home values of $164,621 and $170,070, respectively. This highlights how urban centers, particularly those with strong university presences or significant economic activity, can command higher property values.

Rental prices also reflect these regional disparities. While the statewide average rent for a one-bedroom apartment is around $966, specific cities can differ. For example, Des Moines averages about $991 for a one-bedroom apartment, while more affordable options may be found in cities like Marion, where the average rent is closer to $632. These variations extend to utility costs as well, with monthly averages differing across cities such as Des Moines, Cedar Rapids, Iowa City, and Ames. Transportation and grocery costs can also vary regionally, though often less dramatically than housing. Commuting expenses may be higher in rural areas due to greater distances traveled for work or services, while metropolitan areas might offer more public transportation options.