Pros, cons, key stats, and the strongest Iowa cities to consider. Based on our analysis of 109 tracked Iowa city markets.
Yes, for many movers. The better answer is city-specific: Iowa contains both stronger and weaker markets, and the right fit depends on your budget, job needs, climate tolerance, and tax situation.
Pros
- Low top state income-tax rate (3.8%)
- Social Security is not taxed by the state
- Lower median tracked home value ($210,703)
- Healthy housing-market momentum in tracked cities (69/100 median)
- Deep city choice: 109 WWIM-tracked cities
Cons
- High effective property tax rate (1.50%)
- State averages hide major city-by-city differences
What this means in practice
Across 109 tracked Iowa city markets, the median home costs $210,703 with a 1-year change of +3.3% and a median momentum score of 69 out of 100.
On taxes, Moved to flat 3.8% income tax. Higher property tax. SS and retirement income largely untaxed. That matters because the cheapest state on paper can still be expensive if property tax, insurance, or local housing costs overwhelm the headline rate.
State-level averages mask city-level variation — within any state, individual cities can have radically different cost, climate, and trajectory. Use the strongest-momentum cities below as a starting point.
Top 5 Iowa cities by momentum
- Sheldon — momentum 77, median $219,168
- Independence — momentum 76, median $217,685
- Orange City — momentum 75, median $314,872
- Anamosa — momentum 75, median $242,133
- Oskaloosa — momentum 74, median $187,469