Salary to Buy a Home
What Salary Do You Need to Buy a Home in Iowa? (2026)
To buy the median Iowa home ($215,000) with 20% down at today's 6.52% rate, you need an annual income of $68,257 — within reach of the median household income ($68,816). Your monthly PITI payment would be $1,593. With 10% down and PMI, you need $79,968/year and pay $1,866/month.
Income Required to Buy a Median Iowa Home
At 6.52% (30-year fixed, Freddie Mac June 2026) using the 28% front-end DTI rule
20% Down — $43,000 down
$68,257
annual income required
10% Down — $21,500 down
$79,968
annual income required
Monthly Payment Breakdown — $215,000 Median Home
PITI = Principal + Interest + Taxes + Insurance. PMI added for 10%-down scenario.
| Component | 20% Down | 10% Down |
|---|---|---|
| Principal & Interest (20% down) | $1,089 | $1,225 |
| Property Tax (1.46%) | $262 | $262 |
| Homeowners Insurance | $242 | $242 |
| PMI (10% down only) | — | $137 |
| Total Monthly PITI | $1,593 | $1,866 |
| Annual income required (28% DTI) | $68,257 | $79,968 |
Rate: 6.52% 30-year fixed (Freddie Mac June 2026). Property tax: 1.46% effective rate. Insurance: $2,900/yr statewide average. PMI: 0.85% of loan annually.
Iowa Affordability Gap
How far the median household income is from what's needed to buy the median home
Affordable
$559
median income exceeds the income required
Gap %
-0.8%
Iowa households on median income can afford the median home with 0.8% income to spare
Price that fits the median income
$217,075
The most expensive home a typical Iowa household can buy and stay within the 28% PITI rule — at $68,816/year income, 20% down, 6.52% rate. That's above the median home price, meaning the median home is within reach on median income.
Most & Least Affordable Counties in Iowa
Home prices vary significantly by county — these counties anchor the affordability spectrum
Most affordable counties
- 1Wayne County
- 2Decatur County
- 3Ringgold County
Least affordable counties
- 1Dallas County
- 2Johnson County
- 3Linn County
County affordability reflects relative home price levels. Use the mortgage calculator for an exact income analysis at your target county price point.
Mortgage Calculator — Iowa
Pre-loaded with Iowa's $215,000 median home price at 6.52%
Mortgage Estimator
Iowa rates pre-loaded
Monthly Payment
$1,463
estimated all-in payment (PITI)
Tax and insurance estimates use national averages. For Iowa-specific numbers, see the full breakdown below.
Excludes HOA fees. Rates and costs are estimates; actual costs vary.
Full Calculator →How Much Home Can You Afford in Iowa?
The income required figures above are for the median home. Enter your actual income to see what home price you qualify for.
Mortgage Affordability Calculator
Enter your income, debts, and down payment to find your maximum home price — pre-loaded for Iowa
Open Calculator →Frequently Asked Questions
- What salary do you need to buy a house in Iowa?
- To buy Iowa's median-priced home ($215,000) with 20% down at 6.52% (30-year fixed), you need $68,257/year. That keeps your monthly PITI (principal, interest, taxes, insurance) of $1,593 within the 28% front-end DTI guideline. With 10% down and PMI, the required income rises to $79,968/year with a $1,866/month payment. Source: NAR Q1 2026, Freddie Mac June 2026.
- Can the average Iowa household afford a home?
- Yes — Iowa's median household income of $68,816 is $559 above the $68,257 needed to qualify for the median-priced home at 20% down. That makes Iowa one of the more affordable states relative to local incomes.
- What home price can I afford on Iowa's median income?
- At $68,816/year (Iowa's median), your maximum monthly housing budget is $1,606 under the 28% DTI rule. Working backwards at 6.52% with 20% down, that supports a home price of $217,075 — above the $215,000 median, meaning the median home is within reach.
- What is the PITI payment on a median Iowa home?
- On Iowa's median home price of $215,000: with 20% down ($43,000 down), your PITI is $1,593/month. With 10% down ($21,500 down plus PMI), PITI rises to $1,866/month. PITI includes principal & interest at 6.52%, property tax at 1.46%, and homeowners insurance (PMI added for 10%-down scenario at 0.85% of loan annually). Source: Freddie Mac June 2026 / NAR Q1 2026.
- What is the 28% rule for buying a home?
- The 28% rule (HUD front-end DTI standard) says your monthly housing payment — principal, interest, taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income. To qualify for Iowa's median home at 20% down, your PITI would be $1,593/month. Divide by 0.28 to get the required monthly income ($5,688), then multiply by 12: $68,257/year. Lenders also check back-end DTI (all debts ≤ 43%), so existing debt reduces what you can borrow.
- Which Iowa counties are most and least affordable?
- Iowa's most affordable counties for homebuyers include Wayne County, Decatur County, Ringgold County, where home prices are significantly below the state median. The least affordable are typically Dallas County, Johnson County, Linn County, where prices far exceed the statewide average. County-level data is updated quarterly — use the mortgage calculator below for your specific target area.
Related Calculators
Mortgage Affordability Calculator
See what home price you can afford on your income in Iowa
Mortgage Calculator
Full PITI payment on $215,000 at 6.52%
Property Tax Guide
Iowa property tax at 1.46% — how it affects your payment
Home Insurance Costs
Average Iowa homeowners insurance: $2,900/year
Mortgage Payments by Price
Full PITI for 8 home prices in Iowa, from $200K to $750K