What’s the average mortgage payment in Iowa?

According to data collected from Redfin and Rocket Mortgage, the average monthly mortgage payment in Iowa is around $1,623 before property taxes and insurance. Iowa stands out as one of the more affordable housing markets in the Midwest, supported by relatively low home prices, steady demand, and stable inventory levels across much of the state. While home prices have increased in recent years, Iowa’s mortgage payments remain below the national average.

Overview of the Iowa housing market

The median sale price of a home in Iowa is approximately $244,100, according to Redfin’s statewide housing market data. Home prices vary by region, with higher prices concentrated around Des Moines and other larger metro areas, while many rural counties continue to offer comparatively affordable housing options.

Here’s a snapshot of recent median sale prices from Redfin across several Iowa cities:

Factors that influence mortgage payments in Iowa

Your monthly mortgage payment includes principal, interest, taxes, and insurance (PITI). Tools like the Rocket Mortgage® mortgage calculator can help estimate how each of these components affects your total monthly cost.

Home price and down payment

Iowa’s relatively low median home price helps keep mortgage payments affordable for many buyers. Assuming a 20% down payment and 6.5% interest, a typical Iowa home will cost around $1,234 per month before factoring in variables like insurance and taxes.

Down payments below 20% typically require buyers to get private mortgage insurance (PMI).

Mortgage rate

Your Iowa mortgage rate depends on several factors, including:

• Credit score and credit history
• Debt-to-income ratio (DTI)
• Loan type
• Down payment amount
• Home type and location
• Current market rates

Even modest rate changes can impact monthly payments, particularly for higher-priced homes in metro areas.

Loan term

Most buyers choose between a 30-year mortgage and a 15-year mortgage. The 30-year option is the most common and provides lower monthly payments stretched out over an extended time period. Home buyers with more flexibility might opt for the 15-year mortgage, which offers significant interest savings over the course of the loan.

Property taxes and insurance

Iowa’s property tax rate is 1.43%, meaning that an Iowa home owner can expect to pay an additional $290 per month. Homeowners insurance, which can depend on factors such as home age, replacement costs, and weather-related risks, costs $269 per month.

How do mortgage payments in Iowa compare to others in the region?

While mortgage rates are similar across states, differences in home prices significantly affect monthly payments.

Here’s how Iowa compares with nearby Midwestern states:

Iowa’s average mortgage payment is among the lowest in the Midwest, reinforcing its reputation as an affordable housing market.

Counties with the highest mortgage payments in Iowa

Mortgage payments can vary significantly across Iowa counties. The highest payments are typically found in counties with job opportunities or proximity to major metros. The following counties have the highest estimated monthly mortgage payments based on Q1 2025 median sale prices from the National Association of REALTORS®.

Counties with the lowest mortgage payments in Iowa

More rural counties tend to offer much lower home prices, translating into smaller loan amounts and lower monthly payments. Here are the most affordable counties in Iowa:

How to calculate your mortgage payment

Lenders use a standard formula that accounts for your loan amount, interest rate, and loan term.

Home buyers can use online mortgage calculators to adjust loan terms, down payments, and rates to estimate monthly payments. Additional tools help estimate PMI, refinancing scenarios, and affordability.

Iowa-specific mortgage resources

Iowa offers several programs designed to support homebuyers:

• Iowa Finance Authority (IFA): Provides first-time homebuyer loans, down payment assistance, and mortgage credit certificates.
• USDA Rural Development Loans: Many rural Iowa counties qualify for USDA loans, which offer zero down payment options.

Average mortgage payment in Iowa FAQ

Where can I find the lowest average mortgage payments in Iowa?

Pocahontas County has the lowest average mortgage payment in the state at about $620 per month. Other rural counties in southern and northwest Iowa also offer very low monthly housing costs.

Which county has the highest average mortgage payments in Iowa?

Dallas County has the highest average mortgage payment in the state at roughly $2,230 per month, driven by strong demand and higher home prices near the Des Moines metro.

How much do you need to make to afford a home in Iowa?

Using the 28/36 rule, a household with a typical mortgage payment of $1,623 might aim for a gross monthly income of about $5,800, or roughly $70,000 per year, depending on other debt obligations.

The bottom line: Multiple factors shape your mortgage payment in Iowa

Iowa’s relatively low home prices help keep mortgage payments affordable across much of the state. While taxes and insurance can add to monthly costs, many buyers still find Iowa to be one of the most accessible markets for homeownership. Understanding local market conditions, interest rates, and assistance programs can help buyers make informed decisions.

Whether you’re a first-time buyer or an experienced homeowner, get prequalified for a loan with Rocket Mortgage to understand your buying power and begin the process with confidence.

*Methodology: Average monthly mortgage payment in a region, calculated based on average home purchase price for a fixed 30-year loan and a 52-week average interest rate of 6.68% from Freddie Mac as of August 2025.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.