Ottumwa, IA

Very Low · 53

Iowa · Population 25,352 · Updated March 2026

$956
Median Rent / Month
$56,994
Median Income
$92,400
Median Home Value
$871
Owner Costs / Month

Affordability

How far your income goes in Ottumwa

20.1%
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

$11,472
Annual Rent
$3,249
State Income Tax
$1,451
Property Tax (est.)

Cost of Living Overview

Ottumwa is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 53 (where 100 equals the national median), Ottumwa residents can expect to pay median rent of $956/month while earning a median household income of $56,994/year.

The median home value in Ottumwa, IA is $92,400, with typical monthly owner costs around $871 including mortgage, insurance, and taxes. The median rent-to-income ratio of 20.1% 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 Ottumwa.

Frequently Asked Questions

Common questions about living costs in Ottumwa

What is the cost of living in Ottumwa, IA?
The cost of living index in Ottumwa, IA is 53 (US average = 100). Median monthly rent is $956, median household income is $56,994/year, and the median home value is $92,400.
Is Ottumwa, IA affordable?
Yes, Ottumwa is more affordable than the national average with a cost index of 53. The rent-to-income ratio is 20.1%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Ottumwa, IA?
The median gross rent in Ottumwa, IA is $956 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $11,472.
What is the median household income in Ottumwa?
The median household income in Ottumwa, IA is $56,994 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%.