The 25 Best Small Towns for First-Time Home Buyers in Iowa
Ranked on The Town Files lifestyle rankings among 99 towns of 2,500–10,000 people in Iowa. #1 is Madrid, IA.
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25Bloomfield, Iowa
Better for first-time buyers than 73% of Iowa towns
2,682 people · Davis County · median home $132,000 · income $60,769 · Jan low 15°F · 24 in snow
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24Osage, Iowa
Better for first-time buyers than 75% of Iowa towns
3,627 people · Mitchell County · median home $160,700 · income $68,730 · Jan low 6°F · 40 in snow
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23Keokuk, Iowa
Better for first-time buyers than 75% of Iowa towns
9,900 people · Lee County · median home $104,300 · income $52,711 · Jan low 17°F · 22 in snow
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22Fairfax, Iowa
Better for first-time buyers than 79% of Iowa towns
2,828 people · Linn County · median home $274,500 · income $114,375 · Jan low 11°F · 27 in snow
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21Monticello, Iowa
Better for first-time buyers than 80% of Iowa towns
4,040 people · Jones County · median home $175,200 · income $70,015 · Jan low 9°F · 32 in snow
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20Huxley, Iowa
Better for first-time buyers than 81% of Iowa towns
4,244 people · Story County · median home $297,100 · income $112,094 · Jan low 10°F · 27 in snow
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19Perry, Iowa
Better for first-time buyers than 82% of Iowa towns
7,836 people · Dallas County · median home $121,400 · income $68,910 · Jan low 10°F · 34 in snow
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18Iowa Falls, Iowa
Better for first-time buyers than 83% of Iowa towns
5,106 people · Hardin County · median home $123,800 · income $50,417 · Jan low 8°F · 28 in snow
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17Glenwood, Iowa
Better for first-time buyers than 87% of Iowa towns
5,073 people · Mills County · median home $206,200 · income $71,790 · Jan low 12°F · 24 in snow
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16Mount Pleasant, Iowa
Better for first-time buyers than 87% of Iowa towns
9,274 people · Henry County · median home $160,900 · income $61,042 · Jan low 13°F · 25 in snow
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15Kalona, Iowa
Better for first-time buyers than 88% of Iowa towns
2,630 people · Washington County · median home $257,900 · income $80,129 · Jan low 15°F · 28 in snow
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14Hiawatha, Iowa
Better for first-time buyers than 88% of Iowa towns
7,183 people · Linn County · median home $216,900 · income $66,270 · Jan low 13°F · 34 in snow
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13Webster City, Iowa
Better for first-time buyers than 88% of Iowa towns
7,825 people · Hamilton County · median home $127,200 · income $63,430 · Jan low 7°F · 33 in snow
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12Washington, Iowa
Better for first-time buyers than 91% of Iowa towns
7,352 people · Washington County · median home $152,300 · income $55,373 · Jan low 12°F · 25 in snow
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11Centerville, Iowa
Better for first-time buyers than 92% of Iowa towns
5,412 people · Appanoose County · median home $103,000 · income $46,563 · Jan low 12°F · 22 in snow
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10Nevada, Iowa
Better for first-time buyers than 92% of Iowa towns
6,925 people · Story County · median home $182,400 · income $75,094 · Jan low 10°F · 27 in snow
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9Grundy Center, Iowa
Better for first-time buyers than 93% of Iowa towns
2,796 people · Grundy County · median home $177,900 · income $80,357 · Jan low 9°F · 32 in snow
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8Fairfield, Iowa
Better for first-time buyers than 93% of Iowa towns
9,416 people · Jefferson County · median home $156,000 · income $51,311 · Jan low 14°F · 22 in snow
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7Carlisle, Iowa
Better for first-time buyers than 94% of Iowa towns
4,160 people · Warren County · median home $234,300 · income $109,191 · Jan low 14°F · 37 in snow
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6Forest City, Iowa
Better for first-time buyers than 94% of Iowa towns
4,285 people · Winnebago County · median home $143,500 · income $69,205 · Jan low 6°F · 41 in snow
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5Story City, Iowa
Better for first-time buyers than 96% of Iowa towns
3,352 people · Story County · median home $215,600 · income $96,605 · Jan low 11°F · 32 in snow
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4Shenandoah, Iowa
Better for first-time buyers than 96% of Iowa towns
4,925 people · Page County · median home $116,700 · income $59,783 · Jan low 14°F · 26 in snow
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3Missouri Valley, Iowa
Better for first-time buyers than 97% of Iowa towns
2,678 people · Harrison County · median home $148,500 · income $71,818 · Jan low 10°F · 29 in snow
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2Carter Lake, Iowa
Better for first-time buyers than 97% of Iowa towns
3,791 people · Pottawattamie County · median home $169,400 · income $85,349 · Jan low 15°F · 27 in snow
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1Madrid, Iowa
Better for first-time buyers than 98% of Iowa towns
2,802 people · Boone County · median home $185,600 · income $89,844 · Jan low 12°F · 33 in snow
Price vs ranking
More Iowa rankings
- The 25 Best Small Towns to Retire in Iowa
- The 25 Most Affordable Small Towns in Iowa
- The 18 Best Small Towns for Families in Iowa
- 25 Small Towns in Iowa With the Cheapest Homes
- 25 Small Towns in Iowa With the Mildest Winters
- The 25 Most Walkable Small Towns in Iowa
- 25 Small Towns in Iowa With the Fewest Tornadoes Since 1950
Same ranking, other places
- The 50 Best Small Towns for First-Time Home Buyers in America
- The 25 Best Small Towns for First-Time Home Buyers in Pennsylvania
- The 25 Best Small Towns for First-Time Home Buyers in New York
- The 25 Best Small Towns for First-Time Home Buyers in Michigan
- The 25 Best Small Towns for First-Time Home Buyers in Texas
- The 25 Best Small Towns for First-Time Home Buyers in California
- The 25 Best Small Towns for First-Time Home Buyers in New Jersey
- The 25 Best Small Towns for First-Time Home Buyers in Florida
- The 25 Best Small Towns for First-Time Home Buyers in Wisconsin
- The 25 Best Small Towns for First-Time Home Buyers in Ohio
- U.S. Census Bureau, American Community Survey 5-year estimates (2020–2024)
- U.S. Census Bureau, 2020 Census and 2025 Gazetteer (2020 / 2025)
- NOAA NCEI U.S. Climate Normals (1991–2020)
- NOAA NCEI Storm Events Database (1950–2026)
- FEMA OpenFEMA Disaster Declarations (this product uses the FEMA OpenFEMA API but is not endorsed by FEMA) (1953–2026)
- NCES Common Core of Data (2023–24)
- BLS Quarterly Census of Employment and Wages; USDA ERS county unemployment (BLS LAUS) (2000–2024)
- The Town Files lifestyle rankings, built from federal demographic, school, crime and housing data (2025)