Income Needed to Buy a Home in Iowa (2026)
Verdict: affordable — requires $74,199/year (#50 least affordable of 51 US states)
Iowa ranks #50 of 51 US states for housing unaffordability in 2026. Buying the median home at $231,585 requires a household income of about $74,199. That leaves a median household with roughly $1,302 of annual income to spare after qualifying — one of the few places in the dataset where the median family clears the bar.
Iowa's affordability ratio of 0.98 (required income ÷ actual median income) is 23.1% better than the median across all 51 US states (1.28). Home prices here sit 33.2% below the cross-state median of $346,668.
An effective property tax rate of 1.23% adds $237 per month, while homeowners insurance runs about $2,446/year. All-in, the monthly PITI (principal, interest, taxes, insurance) comes to $1,731.
Iowa monthly cost breakdown (2026)
| Median home price | $231,585 |
| Loan amount (10% down) | $208,426 |
| Monthly principal & interest | $1,290 |
| Monthly property tax (1.23% rate) | $237 |
| Monthly homeowners insurance | $204 |
| Total monthly PITI | $1,731 |
| Required household income | $74,199 |
| Median household income | $75,501 |
Run your own numbers
These figures model the median buyer. Your rate, down payment, and debts change the answer — check your personal maximum with the Home Affordability Analyzer or build a full payment schedule in the Advanced Mortgage Calculator. Closing costs typically add 2–5% on top — estimate them with the Closing Costs Estimator.
How Iowa compares
- Indiana — similar affordability (ratio 1.02, requires $73,609)
- Ohio — similar affordability (ratio 1.02, requires $74,011)
- Mississippi — similar affordability (ratio 1.05, requires $62,027)
- West Virginia — among the most affordable US states (requires $48,369)
See every state and province ranked in the 2026 Mortgage Affordability Index.
Frequently asked questions
How much income do you need to buy a house in Iowa in 2026?
About $74,199 per year to afford the median-priced home of $231,585, assuming a 10% down payment and standard 28% housing-cost-to-income guideline. The median Iowa household earns $75,501.
What is the monthly cost of owning a median home in Iowa?
Roughly $1,731 per month, including principal and interest, property tax, and homeowners insurance.
Is Iowa affordable at the median income?
Yes — Iowa is one of the few regions where the median household income ($75,501) exceeds the required income. It ranks #2 most affordable of 51 US states.
Methodology & sources
Assumes 10% down, 30-year fixed at prevailing 2026 rates, 28% housing-cost-to-income guideline. Home prices from Zillow ZHVI (March 2026); incomes from Census ACS 1-Year 2024; property taxes from Tax Foundation; insurance from Bankrate state averages. Figures model the median scenario and are not financial advice. Full sources on the affordability index.