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Iowa home affordability calculator

The median Iowa household earns about $72,000 a year, and the median home costs about $210,000 — 2.9 times income. With 10% down, no other debts, and the current 7.32% average 30-year rate (Freddie Mac, week of October 22, 2026), standard lending ratios support a home of about $203,697 , roughly $6,303 short of the median. The calculator is pre-filled with those figures — replace them with yours.

$203,697 max home price

Max loan amount
$182,697
Housing payment budget
$1,680
P&I budget
$1,255
Bound by
front-end ratio

Uses the 28% front-end / 36% back-end DTI guidelines. Lenders vary.

How it works

Lenders cap the full housing payment — principal, interest, property tax, insurance — near 28% of gross monthly income, and all debt payments near 36%. In Iowa, property tax at about 1.52% of value plus roughly $1,900 a year of homeowners insurance come to about $424 a month on the median home, and that comes out of the 28% budget before anything goes to the loan. On the median income the housing budget is about $1,680 a month, leaving $1,255 for principal and interest.

Homes in Iowa spend about 45 days on the market on average. Iowa's home prices are among the lowest in the country, but an above-average property tax rate set largely at the county and school-district level offsets some of that affordability.

Frequently asked questions

How much house can I afford in Iowa on the median income?
On Iowa's median household income of about $72,000, with no other debts, 10% down, and a 7.32% 30-year rate, the 28% housing guideline supports a home of roughly $203,697. That's about $6,303 below the $210,000 median home price.
What income do I need to buy a median-priced home in Iowa?
Iowa's median home costs about $210,000 — 2.9 times the median household income. Lenders' 28% front-end rule means the full payment, including about $424 a month in property tax and insurance, needs to fit inside 28% of gross monthly income. Try the calculator with your own income and down payment.
How much do property tax and insurance add in Iowa?
On the median home, Iowa's 1.52% effective property tax rate and about $1,900 a year in homeowners insurance come to roughly $424 a month — money that comes out of the housing budget before any goes to principal and interest.
Does Iowa's income tax affect how much house I can afford?
Not in the lender's math, which uses gross income. It does affect what's comfortable: Iowa's income tax tops out at 3.80%, so take-home pay is smaller than gross by more than federal tax alone.

Learn more: How much house can I afford?

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