Ames, IA

Below Avg · 78

Iowa · Population 66,112 · Updated March 2026

$1,040
Median Rent / Month
$60,102
Median Income
$263,800
Median Home Value
$1,082
Owner Costs / Month

Affordability

How far your income goes in Ames

20.8%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Iowa

State-level tax rates that affect your costs

5.7%
Income Tax (Top Rate)
6.0%
Sales Tax
1.57%
Property Tax Rate

Estimated Annual Costs

$12,480
Annual Rent
$3,426
State Income Tax
$4,142
Property Tax (est.)

Cost of Living Overview

Ames is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 78 (where 100 equals the national median), Ames residents can expect to pay median rent of $1,040/month while earning a median household income of $60,102/year.

The median home value in Ames, IA is $263,800, with typical monthly owner costs around $1,082 including mortgage, insurance, and taxes. The median rent-to-income ratio of 20.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Iowa has a moderate income tax rate of 5.7%. Combined with a 6.0% sales tax rate and 1.57% effective property tax rate, the overall tax environment is a factor in the total cost of living in Ames.

Frequently Asked Questions

Common questions about living costs in Ames

What is the cost of living in Ames, IA?
The cost of living index in Ames, IA is 78 (US average = 100). Median monthly rent is $1,040, median household income is $60,102/year, and the median home value is $263,800.
Is Ames, IA affordable?
Yes, Ames is more affordable than the national average with a cost index of 78. The rent-to-income ratio is 20.8%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Ames, IA?
The median gross rent in Ames, IA is $1,040 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $12,480.
What is the median household income in Ames?
The median household income in Ames, IA is $60,102 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Iowa?
Iowa has a top income tax rate of 5.7%, a sales tax of 6.0%, and an effective property tax rate of 1.57%.