Cost of Living in Iowa City, IA
Population 75,264 · Iowa · Data vintage 2023
(100 = US avg)
With a median age of 26 and an unusually high bachelor's-degree rate of 31%, Iowa City is shaped heavily by its student population. That also means median household incomes of $57,533 skew low — the count includes students — while working-household figures run considerably higher. Around 26% of residents live below the federal poverty line, a rate that tends to correlate with the income and housing figures above.
Iowa City sits roughly 25 miles southeast of Cedar Rapids — close enough that regional housing and labor patterns are shaped largely by the larger market. Median home values run roughly 54% higher than Cedar Rapids' $177,000.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Iowa City
The median home value in Iowa City is $273,600 — 10% below the national median of $305,000. Median rent runs $1,094/month, 17% lower than the national median of $1,314/month. The median household income of $57,533/year is 23% lower than the US median of $74,580. The local unemployment rate is 4.2%, below the national average of 4.8%. Iowa's top state income tax rate is 5.7% and the combined sales tax is 6.9%. The climate averages highs of 60.9°F and lows of 41.0°F. Overall, Iowa City has a cost of living index of 87 versus the US average of 100, meaning it is 13% less expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
🌤 Climate
NOAA 1991–2020 Climate Normals
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| High °F | 31 | 36 | 50 | 63 | 73 | 83 | 86 | 84 | 78 | 64 | 49 | 36 |
| Low °F | 15 | 19 | 30 | 40 | 52 | 62 | 66 | 63 | 54 | 42 | 30 | 20 |
| Precip" | 1.04 | 1.21 | 2.21 | 3.76 | 4.48 | 5.29 | 3.91 | 3.94 | 3.24 | 2.98 | 2.17 | 1.45 |
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
🏫 Schools
NCES CCD 2019 — public school district data
Frequently Asked Questions
What is the cost of living in Iowa City, IA?
Iowa City has a cost index of 87 (100 = national average). It is 13% below the national average.
What is average rent in Iowa City, IA?
The median gross rent in Iowa City is $1,094 per month based on 2023 Census data.
What is the average home price in Iowa City?
The median home value in Iowa City is $273,600 according to Zillow and Census data.
What is the median income in Iowa City?
The median household income in Iowa City is $57,533 per year (2023 ACS 5-year estimates).
What is the sales tax in Iowa City, IA?
The combined state and local sales tax rate in Iowa City is 6.9%. The Iowa state income tax top rate is 5.7%.
Is Iowa City, IA affordable?
Yes, Iowa City is generally considered affordable, with a cost of living index of 87 — about 13% below the US national average of 100.
What is the weather like in Iowa City?
Iowa City has average high temperatures of 60.9°F and average lows of 41.0°F. Annual precipitation is 35.7". Data from NOAA 1991–2020 Climate Normals.
Iowa City at a Glance
- Population
- 75,264
- Median Income
- $57,533
- Home Value
- $273,600
- Median Rent
- $1,094/mo
- Unemployment
- 4.2%
- Avg High Temp
- 60.9°F
- Sales Tax
- 6.9%
Nearby Cities
Explore county-level cost of living data
Iowa Rankings
Similar Cost Cities
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