While other states are busy turning homebuying into an Olympic event requiring perfect credit and a trust fund, Iowa’s small towns are practically handing out house keys.
These aren’t fixer-uppers that require a construction degree and unlimited patience.
We’re talking about real homes in real communities where your biggest housing worry might be choosing between the house with the nice porch or the one with the bigger garage.
Some of these prices are so reasonable, you might think someone accidentally dropped a decimal point.
1. Keokuk, Iowa
WanderingWalksofWonder
Keokuk sits right where the Mississippi River meets the Des Moines River. This historic river town has been around since 1847.
The downtown area still has beautiful 19th-century buildings. You can walk along the riverfront and watch barges go by.
Housing costs here are incredibly low. The median home price is around $65,000.
Why It’s On This List: You can buy a decent 3-bedroom home for less than what most people spend on a new car.
2. Fort Madison, Iowa
Fort Madison is famous for having the oldest military fort west of the Mississippi River. The town has about 10,000 friendly residents.
The Santa Fe Swing Span Bridge here is the largest double-deck swing-span railroad bridge in the world. That’s pretty impressive for a small Iowa town.
You can get a nice house here for under $80,000. The cost of living is 20% below the national average.
Why It’s On This List: Your monthly housing payment could be less than what some people pay for their cell phone bill.
3. Centerville, Iowa
Centerville is the county seat of Appanoose County. It has a charming town square that looks like something from a movie.
The town sits on several underground coal mines from the 1800s. Don’t worry – they’re all sealed up now.
Lake Rathbun is just 10 minutes away. You can fish, boat, or just enjoy the peaceful water views.
Why It’s On This List: The average home price is $55,000, making it one of the most affordable places to live in America.
4. Creston, Iowa
Creston has been the county seat of Union County since 1855. The town has beautiful Victorian-era homes throughout the neighborhoods.
McKinley Park has a great walking trail and playground. The town also has an 18-hole golf course that’s very affordable.
You can buy a move-in ready home for around $70,000. Property taxes are also very reasonable.
Why It’s On This List: Your total monthly housing costs including taxes and insurance could be under $400.
5. Clarinda, Iowa
Clarinda is the birthplace of Glenn Miller, the famous big band leader. There’s even a festival every year to celebrate his music.
The town has a beautiful courthouse square with local shops and restaurants. Southwest Iowa Mental Health Center provides jobs for many residents.
Housing is extremely affordable here. You can find nice 2-bedroom homes for $45,000 to $60,000.
Why It’s On This List: You could potentially pay off your mortgage in just a few years instead of decades.
6. Ottumwa, Iowa
Ottumwa sits along the Des Moines River in southeast Iowa. The town has about 25,000 residents and a rich railroad history.
Beach Ottumwa is a popular summer destination with a sandy beach and swimming area. Yes, Iowa has beaches too.
The median home price is around $75,000. That’s incredibly low for a town with this many amenities and services.
Why It’s On This List: You get small-town charm with big-town services at prices that seem too good to be true.
7. Red Oak, Iowa
Red Oak is known as the “Friendly City” and lives up to its name. The downtown area has been beautifully restored with antique shops and cafes.
The town has excellent healthcare facilities including a modern hospital. Montgomery County Memorial Hospital serves the entire region.
You can buy a solid 3-bedroom home here for $60,000 to $80,000. The property taxes are among the lowest in Iowa.
Why It’s On This List: Your housing costs will be so low that you’ll have plenty left over for travel and hobbies.
8. Mount Pleasant, Iowa
Mount Pleasant is home to Iowa Wesleyan University, which gives the town a youthful energy. The campus is beautiful with historic brick buildings.
The town square hosts farmers markets and festivals throughout the year. There’s always something happening in the community.
Even with a university in town, housing remains very affordable. Most homes sell for $70,000 to $90,000.
Why It’s On This List: You get the cultural benefits of a college town without the high costs usually associated with them.
9. Oskaloosa, Iowa
Oskaloosa is the county seat of Mahaska County. The town has a beautiful courthouse and well-maintained historic district.
William Penn University is located here, bringing students and cultural events to the community. The campus often hosts concerts and theater productions.
Housing costs are remarkably low for a college town. You can find quality homes for $65,000 to $85,000.
Why It’s On This List: You’re better off buying here than renting in most major cities across the country.
10. Fairfield, Iowa
Fairfield has a unique claim to fame – it’s home to Maharishi International University. This brings an interesting mix of cultures and philosophies to small-town Iowa.
The town square is surrounded by local businesses and restaurants. There are several organic food stores and health-focused establishments.
Despite the university presence, housing remains very affordable. Most homes are priced between $75,000 and $95,000.
Why It’s On This List: You get diversity, culture, and affordability all in one peaceful Iowa community.
11. Burlington, Iowa
Burlington sits on bluffs overlooking the Mississippi River. The town was Iowa’s first territorial and state capital back in the 1830s.
Snake Alley is here – it’s called the most crooked street in the world. The street winds back and forth down a steep hill with seven curves.
You can buy riverfront property for a fraction of what it costs elsewhere. Most homes sell for $60,000 to $85,000.
Why It’s On This List: You could own a home with Mississippi River views for less than a down payment in most cities.
12. Knoxville, Iowa
Knoxville is famous for the Knoxville Raceway, known as the “Sprint Car Capital of the World.” Racing fans come from all over the country for events here.
Lake Red Rock is just minutes away. It’s Iowa’s largest lake and perfect for boating, fishing, and swimming.
Housing is incredibly affordable even during race season. You can find nice homes for $55,000 to $75,000.
Why It’s On This List: Your mortgage payment could be lower than what most people spend on entertainment each month.
13. Chariton, Iowa
Chariton is the county seat of Lucas County. The town has a beautiful courthouse square with local shops and cafes.
Red Haw State Park is right outside town. It offers hiking trails, fishing, and camping in a peaceful setting.
You can buy a move-in ready home for around $50,000. That’s less than many people spend on a new pickup truck.
Why It’s On This List: You could pay cash for a house instead of taking out a mortgage.
14. Albia, Iowa
Albia sits in the heart of Iowa’s coal mining region. The town has a rich history dating back to the 1800s.
Lake Miami is nearby for outdoor recreation. The town also has several parks and a public golf course.
Housing costs here are among the lowest in Iowa. Quality homes sell for $45,000 to $65,000.
Why It’s On This List: You’re better off buying here than renting a small apartment in most major cities.
15. Sigourney, Iowa
Sigourney is the county seat of Keokuk County. The town has a charming courthouse square with antique shops and local restaurants.
The town hosts an annual balloon festival that draws visitors from across the Midwest. Hot air balloons fill the sky for a weekend each summer.
You can find excellent homes here for $55,000 to $70,000. The property taxes are very reasonable too.
Why It’s On This List: Your total housing costs could be less than what some people pay for car payments.
16. Leon, Iowa
Leon is a small town with big heart. It’s the county seat of Decatur County and has about 1,900 residents.
The town square has been beautifully maintained with local businesses and a classic courthouse. There’s a strong sense of community here.
Housing is extremely affordable. You can buy a nice 3-bedroom home for $40,000 to $60,000.
Why It’s On This List: You could own your home outright for what most people spend on a few years of rent.
17. Bloomfield, Iowa
Bloomfield is surrounded by rolling hills and farmland. The town has a peaceful, rural atmosphere that many people find relaxing.
Lake Wapello State Park is just a short drive away. It offers excellent fishing, hiking trails, and camping facilities.
That’s why housing costs are so low here – you can find quality homes for $50,000 to $70,000.
Why It’s On This List: You get country living with small-town amenities at prices that seem unreal.
18. Corydon, Iowa
Corydon is the county seat of Wayne County. The town has a beautiful courthouse and well-preserved historic district.
Prairie Trails Museum showcases local history and pioneer life. The town also has several parks and recreational facilities.
Housing is incredibly affordable here. Most homes sell for $45,000 to $65,000.
Why It’s On This List: You could buy a house for less than what many people owe on their student loans.
19. Lamoni, Iowa
Lamoni is home to Graceland University, which brings educational and cultural opportunities to this small town. The campus is beautiful with historic buildings.
The town has several parks and a public golf course. There’s also a community center with various activities and programs.
Despite having a university, housing remains very affordable. You can find homes for $55,000 to $75,000.
Why It’s On This List: You get the benefits of a college town without the typical high housing costs.
20. Osceola, Iowa
Osceola is the county seat of Clarke County. The town has a charming courthouse square and friendly community atmosphere.
Lakeside Casino is located here, bringing entertainment and jobs to the area. The town also has good restaurants and shopping.
Want me to tell you the best part? You can buy a quality home here for $60,000 to $80,000.
Why It’s On This List: You could live comfortably on a modest retirement income with housing costs this low.