Waterloo, IA

Very Low · 58

Iowa · Population 66,947 · Updated March 2026

$896
Median Rent / Month
$56,344
Median Income
$150,200
Median Home Value
$916
Owner Costs / Month

Affordability

How far your income goes in Waterloo

19.1%
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

$10,752
Annual Rent
$3,212
State Income Tax
$2,358
Property Tax (est.)

Cost of Living Overview

Waterloo is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 58 (where 100 equals the national median), Waterloo residents can expect to pay median rent of $896/month while earning a median household income of $56,344/year.

The median home value in Waterloo, IA is $150,200, with typical monthly owner costs around $916 including mortgage, insurance, and taxes. The median rent-to-income ratio of 19.1% 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 Waterloo.

Frequently Asked Questions

Common questions about living costs in Waterloo

What is the cost of living in Waterloo, IA?
The cost of living index in Waterloo, IA is 58 (US average = 100). Median monthly rent is $896, median household income is $56,344/year, and the median home value is $150,200.
Is Waterloo, IA affordable?
Yes, Waterloo is more affordable than the national average with a cost index of 58. The rent-to-income ratio is 19.1%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Waterloo, IA?
The median gross rent in Waterloo, IA is $896 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $10,752.
What is the median household income in Waterloo?
The median household income in Waterloo, IA is $56,344 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%.