Why More People Are Moving to Affordable Towns Across Iowa
Living in Iowa can be a smart financial move, especially in 2025. With a lower than average cost of living, strong community values, and access to nature, it's no surprise that more families, retirees, and remote workers are looking for the most affordable cities and towns in Iowa. If you're searching for the cheapest places to live in Iowa that offer a good quality of life, this guide is designed for you.
Top Budget-Friendly Cities in Iowa to Consider in 2025
These Iowa cities and towns provide affordable housing prices, reasonable utilities, safe neighborhoods, and a strong sense of community. If you're planning a move in 2025, these are the places where your dollars can go further.
1. Marshalltown – Low Cost of Living with Essential Amenities
Marshalltown stands out for affordability and convenience. Housing prices in Marshalltown are well below the national average, and many residents enjoy a peaceful lifestyle with access to schools, parks, and shopping centers.
- Median home price: Around $140,000
- Median rent: Under $800/month
- Utilities and groceries cost slightly below the state average
Marshalltown also offers job opportunities in healthcare, education, and manufacturing.
2. Fort Dodge – Affordable Living with a Strong Job Market
Fort Dodge is known for its affordability and industrial job market. Housing and rental costs are among the lowest in the state, and many local employers offer competitive wages for skilled workers.
- Median home cost: Approximately $130,000
- Rent: Typically between $650–$900/month
- Low property taxes and cost-effective public services
It’s a great option if you're looking for the cheapest cities in Iowa for families or young professionals starting out.
3. Ottumwa – Small-Town Iowa with Big Savings
Ottumwa offers one of the best combinations of low housing prices and basic amenities. The town continues to grow through local initiatives and remains one of the most affordable cities in 2025 for those on a fixed income or tight budget.
- Median home price: Just below $120,000
- Cost of living index: 23% lower than the national average
You’ll find healthcare centers, community colleges, and a growing arts scene here.
4. Sioux City – Budget-Friendly Urban Living
Sioux City provides a more urban lifestyle while staying affordable. It has a lower cost of living than most American cities, and housing is competitively priced in its neighborhoods.
- Median home cost: Around $160,000
- Median monthly rent: Close to $850
- Public transportation and walkable neighborhoods reduce transportation costs
Sioux City offers cultural attractions, healthcare facilities, and employment across multiple industries.
5. Newton – Ideal for Small Families and Retirees
Newton is often ranked among the most affordable small cities in Iowa. Quiet neighborhoods, good schools, and local events create a welcoming environment for families or retirees.
- Median house price: Around $135,000
- Utility costs: Lower than the state average
You're also just 35 minutes from Des Moines, making it great for commuters wanting affordability and access to a larger city.
What Makes Iowa a Smart Choice for Affordable Living?
Iowa consistently ranks high in cost of living indexes. Beyond housing, public services like transportation and healthcare are also reasonably priced. Most Iowa towns feature:
- Low property and income taxes
- Affordable health and utility expenses
- Strong infrastructure and public services
- Safe neighborhoods and quality schools
In 2025, more people are discovering that small towns in Iowa combine affordability with a genuine sense of community.
FAQs: Affordable Cities in Iowa in 2025
Which city in Iowa has the lowest housing prices?
As of 2025, towns like Ottumwa and Fort Dodge have some of the lowest average home prices in Iowa.
Is Iowa a good state for retirees looking to save money?
Yes, Iowa is retirement-friendly with affordable property taxes, cost-effective healthcare, and quiet small towns perfect for retirees on a limited budget.
What are the cheapest and safest cities to live in Iowa in 2025?
Cities like Newton, Marshalltown, and Sioux City balance affordability with low crime rates, good public services, and high livability scores.
Are there affordable Iowa towns close to Des Moines?
Yes, Newton is a prime example. It offers low housing costs and is located under 40 minutes from Des Moines.
How is the job market in Iowa’s cheapest cities?
Cities like Fort Dodge and Sioux City have stable job markets, especially in healthcare, manufacturing, and education sectors.
Finding Your Ideal Iowa Town in 2025
If you're planning a move to save on living costs or start fresh in an affordable, welcoming setting, Iowa offers many options. From small towns to mid-sized cities, you’ll find communities that provide real value without sacrificing quality of life.
When choosing from the cheapest cities in Iowa in 2025, remember to factor in your personal needs—such as schools, job access, healthcare, or proximity to major cities. Each town has its own flavor and benefits, but they all provide real, tangible savings and peace of mind.
With a little research and the right priorities, you'll find that Iowa is more than just affordable—it's a place where you can grow, thrive, and build a future without financial stress.
