Iowa (IA) · State tax: 3.8% · Property tax: 1.50% · Median home (ZHVI): $215,000
As of · Sources: Zillow ZHVI, Tax Foundation, Census ACS, Freddie Mac PMMS
Your debt-to-income (DTI) ratio in Iowa is a critical metric for mortgage and loan qualification. Lenders typically require a front-end DTI below 28% (housing costs only) and a back-end DTI below 36–43% (all debts). In Iowa, the 3.8% state income tax reduces your gross-to-net ratio, but lenders use gross income for DTI calculations. With a median home price of $215,000 and property taxes of 1.5%, housing costs in Iowa can consume a significant portion of median household income. The cost of living index of 88.8 provides additional context for how much of your income goes to non-housing obligations that factor into back-end DTI.
Median income ÷ PITI determines borrowing headroom for the debt-to-income ratio calculator in Iowa. Every row cites a primary public dataset. Numbers reflect the most recent vintage available; refresh cadence is documented in the methodology.
The Debt-to-Income Ratio Calculator runs a well-known formula (principal × rate, discounted cash flow, amortization, or equivalent) client-side and layers on Iowa's tax and cost-of-living inputs. State-specific numbers — brackets, exemptions, and averages — come from public federal / state datasets cited in the sources section.
Same formula, different inputs. Each city name links to its own pSEO page where the calculator is pre-filled with local medians.
| City | Median home | Median rent | HUD FMR 2BR | Median income |
|---|---|---|---|---|
| Des Moines, IA | $290,940 | $1,268/mo | $1,175/mo | $84,209 |
| Cedar Rapids, IA | $236,652 | $1,231/mo | $1,125/mo | $77,084 |
| Davenport, IA | $165,000 | $850/mo | $775/mo | $71,925 |
Sources: Zillow ZHVI + ZORI[1], HUD FMR[2], Census ACS[3], Freddie Mac PMMS[4].
Moving one state over changes the debt-to-income ratio numbers. Compare median home value (Zillow ZHVI), top marginal income tax rate, effective property tax rate, and the BEA all-items Regional Price Parity across Iowa and its border states.
| State | Median home | Top inc tax | Prop tax rate | RPP (US=100) |
|---|---|---|---|---|
| Iowa (this page) | $215,000 | 3.80% | 1.50% | 88.8 |
| Illinois side-by-side | $275,000 | 4.95% | 2.23% | 98.8 |
| check Minnesota | $335,000 | 9.85% | 1.12% | 98.3 |
| Missouri equivalent | $245,000 | 4.70% | 0.97% | 91.1 |
| Nebraska equivalent | $265,000 | 5.20% | 1.73% | 90.3 |
Sources: Zillow ZHVI[1], state Departments of Revenue / Tax Foundation[2], Tax Foundation property taxes[3], BEA Regional Price Parities[4].
These calculators share inputs with the debt-to-income ratio formula, so pair them to pressure-test your answer from multiple angles.
| Metric | Iowa | National Avg | IL | MN | MO |
|---|---|---|---|---|---|
| Median Home Price | $215,000 | $420,000 | $315,000 | $425,000 | $295,000 |
| Property Tax Rate | 1.5% | 1.07% | 0.85% | 1.12% | 0.97% |
| State Income Tax | 3.8% | 4.6%* | 4.95% | 9.85% | 5.3% |
| Avg Insurance Cost | $1,670/yr | $1,544/yr | $1,440/yr | $1,320/yr | $1,440/yr |
| Cost of Living Index | 88.8 | 100 | 104 | 105 | 90 |
| Household Income — p25 | $45,807 | $41,401 | $41,110 | $49,800 | $40,004 |
| Household Income — p50 (median) | $85,000 | $83,592 | $84,105 | $92,473 | $78,941 |
| Household Income — p75 | $135,696 | $153,000 | $158,064 | $158,112 | $137,432 |
*Average of states that levy an income tax. 2026 estimates. Iowa recently dropped its top income tax rate from 8.53% to a flat 3.9% and exempted all retirement income.[3] Income percentiles from DQYDJ/Census CPS 2024[4].
Track take-home pay: 3.8% state income tax plus federal + FICA reduces gross wages by roughly 29% in Iowa.
Anchor savings goals to the Iowa cost of living index (88.8). A national 20% savings rate needs adjustment up or down depending on local expense floors.
Use tax-advantaged accounts first: 401(k), HSA, IRA. Contributions to pre-tax accounts save 3.8% at the state level plus your federal marginal rate.
Every number on this page reads from the same CalcFi data repository used by the Live Data pages below — the figures stay consistent.
Home Prices by State
Zillow ZHVI across all 50 states
Property Tax by State
Effective rate × ZHVI = annual bill
Household Income by State
FRED real median + percentile bands
Cost of Living by State
BEA RPP all-items + housing
No-Income-Tax States
Full list + trade-offs
Current Interest Rates
Treasury curve + PMMS + FDIC
CalcFi pSEO pages combine three inputs: (1) the calculator formula itself, which runs client-side so no inputs leave your browser; (2) state-level financial constants from primary public datasets; and (3) national benchmarks for comparison. The Iowa page uses the property tax rate (1.5%), median home price ($215,000), and 3.8% state income tax from the sources listed below.
Refresh cadence:state tax brackets and minimum wage rates are reviewed annually after each state's legislative session. Property tax, median home price, insurance, and cost-of-living figures are reviewed annually against the primary sources. Income percentiles are refreshed when the Census CPS/IPUMS releases update (typically September). Page-level dateModified matches the last editorial review date, shown above.
Known limits: statewide averages mask large intra-state variance — county-level property tax and metro-level home prices differ significantly from the figures shown. For the most precise calculations, cross-check the output against your actual county assessor and the latest federal/state tax tables at filing time.
Use Debt-to-Income Ratio Calculator for any city in Iowa.
Every number on this page cites a primary public dataset. Last reviewed (auto-bumped by the next ISR refresh after an ETL run).
CalcFi does not sell data. If you spot an error, email hello@calcfi.app with the URL and the correct figure.