Iowa variant. This is a Iowa-specific version of the Home Affordability Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Home Affordability Calculator.
How much house you can afford in Iowa hinges on the $70,571 median income, 1.5% property tax, and current rates. The 28/36 rule turns income into a realistic price ceiling.
Affordability math for Iowa
Lenders typically cap housing costs at 28% of gross income. On Iowa's $70,571 median income, that's about $1,647/month for principal, interest, taxes, and insurance.
After reserving for 1.5% property tax and insurance, the remaining payment supports a home priced near $325,649 with 20% down - compared with the $220,000 state median.
About taxes and housing in Iowa
Iowa is transitioning to a flat individual income tax, replacing its former graduated brackets.
Iowa has above-average property taxes that are administered locally and fund schools and county services.
Iowa's economy is led by agriculture, especially corn and soybeans, along with biofuels, insurance, and advanced manufacturing.
Worked example: max price on $70,571
28% of $70,571 ÷ 12 ≈ $1,647/month. At 6.5% for 30 years with 20% down, that supports roughly $325,649 in home price before taxes and insurance reduce it further.
Quick reference
- State income tax: 4.4-5.7%, transitioning to flat 3.9% by 2026
- State sales tax: 6% (plus 0.94% avg local)
- Median home value: $220,000
- Median household income: $70,571
- Effective property tax rate: 1.5%
- Avg auto insurance: $1,322/yr
Frequently Asked Questions
How much house can I afford in Iowa?
On the $70,571 median income, the 28% rule supports roughly $325,649 in home price at current sample rates - adjust for your real income and debts above.
What is the 28/36 rule?
Spend no more than 28% of gross income on housing and 36% on total debt. It's the standard lender affordability guideline.