Income needed to buy a house in Iowa
A median-priced home in Iowa costs $227,300. With 20% down you'd need about $67,151 a year, within reach of the state's median household income of $75,501. Iowa ranks #9 of 51 for the lowest income needed.
Income needed: $67,151 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $67,151 a year to buy a $227,300 home in Iowa with $45,460 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,204 |
| Property tax | $245 |
| Homeowners insurance | $118 |
| Total | $1,567 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $11,365 | $1,883 | $80,679 |
| 10% | $22,730 | $1,803 | $77,252 |
| 20% | $45,460 | $1,567 | $67,151 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Iowa: what's different
- Transfer tax
- 0.16% transfer tax
- On the median home
- $360
- Homestead break
- 10% off taxable value
- First-time buyer help
- Iowa Finance Authority
- Transfer and recording taxes. The real estate transfer tax is 80 cents per $500 of the price (0.16%), with the first $500 exempt. On the median Iowa home ($227,300), that's about $360 in transfer tax.
- Property tax breaks for your home. A 2026 law (SF 2472) replaces the homestead credit with an exemption of 10% of the home's taxable value, at least $5,500 and at most $20,000, starting with the 2026 assessment (taxes paid in September 2027 and March 2028). Owners 65 and older get another $6,500 off.
- First-time buyer help. The Iowa Finance Authority offers FirstHome through participating lenders. Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Iowa metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Des Moines, IA | $85,278 | $288,400 | $85,446 |
| Omaha, NE (12% in IA) | $90,656 | $292,800 | $84,524 |
With 20% down, the median home takes about $85,278 a year in the Des Moines area and $90,656 in the Omaha area, compared with $67,151 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. The metro area centered in Nebraska is included because many of its residents live in Iowa; the share in the state is in parentheses. Rows are ordered by how many residents live in Iowa. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Iowa less expensive than most states
- Home prices: the median value of $227,300 is 37% below the U.S. median of $360,600.
- Property tax: about 1.29% of value a year ($245 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,421 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $124 a month on this loan.
2 states need at least 20% less income to buy their median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Iowa?
About $67,151 a year for the median home of $227,300 with 20% down at 6.95%. With 10% down it's about $77,252.
What is the property tax rate in Iowa?
The median Iowa homeowner pays $2,937 a year, about 1.29% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Iowa?
Median rent is $981 a month, while owning the median home costs about $1,567 a month with 20% down, before maintenance. Renting affordably takes about $39,240 a year under the 30% rule.