Cost of Living in Ames, IA

Population 66,112 · Iowa · Data vintage 2023

84
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Ames's demographic profile reads like a college town: median age of 23, and 33% of adults hold a bachelor's degree — a share well above the national baseline. Housing and rent cycles track the academic calendar more than the broader Iowa economy. Unemployment has stayed elevated relative to the national figure — 6.4% as of the most recent ACS release — which shows up in household-income and poverty figures as well.

Ames is about 30 miles north of Des Moines, the nearest large metro — close enough that regional housing and labor patterns are shaped largely by the larger market. Median home values run roughly 44% higher than Des Moines' $184,000.

Cost Overview

Housing 86
Rent 79

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Ames

The median home value in Ames is $263,800 — 14% below the national median of $305,000. Median rent runs $1,040/month, 21% lower than the national median of $1,314/month. The median household income of $60,102/year is 19% lower than the US median of $74,580. The local unemployment rate is 6.4%, above the national average of 4.8%. Iowa's top state income tax rate is 5.7% and the combined sales tax is 6.9%. Overall, Ames has a cost of living index of 84 versus the US average of 100, meaning it is 16% less expensive.

🏠 Housing

Median Home Value
$263,800
14% below avg
Zillow Home Value
$269,519
Zillow ZHVI
Median Rent
$1,040/mo
21% below avg
Zillow Rent
$1,084/mo
Zillow ZORI
Price-to-Rent Ratio
21.1x
Favors renting
Property Tax Rate
1.6%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$646
1 BR
$716
2 BR
$877
3 BR
$1,170
4 BR
$1,287
Owner-occupied 42.9%
Renter-occupied 57.1%

💰 Estimated Monthly Budget

Rent median rent
$1,040
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,654/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
17.5 min
35% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
11.3%

Commute Mode

Drove alone
65.3%
Carpooled
7.7%
Public transit
5.8%
Walked
7.9%
Bicycle
1.6%
Work from home
11.3%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax 5.7%
Total Sales Tax 6.9%
State rate 6.0%
Avg local rate 0.9%
Property Tax 1.6%

💼 Income & Employment

Median Household Income
$60,102
19% below avg
Per Capita Income
$33,314
Unemployment Rate
6.4%
33% above avg
Poverty Rate
25.9%
Labor Force Participation
64.3%

🎓 Education

Bachelor's degree+ 32.6%
Graduate degree 30.9%

👥 Demographics

Median Age 23.3
Male median age 23.1
Female median age 23.5

🏫 Schools

NCES CCD 2019 — public school district data

93%
4-Year Graduation Rate
14.8:1
Student-teacher ratio
8
Public schools
4,972
Total enrollment

Frequently Asked Questions

What is the cost of living in Ames, IA?

Ames has a cost index of 84 (100 = national average). It is 16% below the national average.

What is average rent in Ames, IA?

The median gross rent in Ames is $1,040 per month based on 2023 Census data.

What is the average home price in Ames?

The median home value in Ames is $263,800 according to Zillow and Census data.

What is the median income in Ames?

The median household income in Ames is $60,102 per year (2023 ACS 5-year estimates).

What is the sales tax in Ames, IA?

The combined state and local sales tax rate in Ames is 6.9%. The Iowa state income tax top rate is 5.7%.

Is Ames, IA affordable?

Yes, Ames is generally considered affordable, with a cost of living index of 84 — about 16% below the US national average of 100.

Ames at a Glance

Population
66,112
Median Income
$60,102
Home Value
$263,800
Median Rent
$1,040/mo
Unemployment
6.4%
Sales Tax
6.9%
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Explore county-level cost of living data

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