How much house can I afford on $40,000 in Iowa?
About $134,000 with 20% down ($108,000 with an FHA loan), using Iowa's 1.27% property tax rate.
That is $102,164 less than the typical Iowa home ($236,623), so on $40,000 you'd look at cheaper areas or a smaller home. The payment of $933 covers $724 principal and interest, $142 property tax and $67 insurance.
Counties in Iowa you can afford on $40,000
5 of 99 counties have a typical home value at or below $134,000:
| County | Typical home | 1-yr change | Tax rate |
|---|---|---|---|
| Wright County | $132,781 | -0.0% | 1.51% |
| Wapello County | $127,798 | +2.4% | 1.58% |
| Lee County | $124,938 | +1.9% | 1.38% |
| Appanoose County | $116,296 | -2.6% | 1.34% |
| Pocahontas County | $99,888 | -8.4% | 1.13% |
Affordable metro areas
Assumes a 30-year fixed loan at 7.11%, property tax of 1.27% of the home value a year, homeowners insurance of 0.6% a year, PMI of 0.5% of the loan a year when the down payment is under 20%, and FHA mortgage insurance of 0.55% a year plus a 1.75% upfront premium added to the loan. Your rate, taxes and insurance will differ.
Other salaries in Iowa
Frequently asked questions
How much house can I afford on $40,000 in Iowa?
About $134,000 with 20% down at 7.11%, keeping the payment (with Iowa's 1.27% property tax and insurance) under $933 a month.
Is $40,000 enough to buy a house in Iowa?
Not the typical home: the typical Iowa home is worth $236,623 (Zillow, September 2026) and $40,000 supports about $134,000. 5 of 99 counties are within budget.