The Town Files

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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Numbers match the ranking.
The 25 Best Small Towns for First-Time Home Buyers in Iowa1. Madrid98th pct2. Carter Lake97th pct3. Missouri Valley97th pct4. Shenandoah96th pct5. Story City96th pct6. Forest City94th pct7. Carlisle94th pct8. Fairfield93rd pct9. Grundy Center93rd pct10. Nevada92nd pct11. Centerville92nd pct12. Washington91st pct13. Webster City88th pct14. Hiawatha88th pct15. Kalona88th pct16. Mount Pleasant87th pct17. Glenwood87th pct18. Iowa Falls83rd pct19. Perry82nd pct20. Huxley81st pct21. Monticello80th pct22. Fairfax79th pct23. Keokuk75th pct24. Osage75th pct25. Bloomfield73rd pct
  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

Median home value vs ranking, Iowa towns0255075100$82K$162K$242K$321K$401KMedian home valuePercentile
Orange squares are the 25 towns on this list; green dots are other towns on The Town Files in Iowa.

More Iowa rankings

Same ranking, other places

Methodology. We ranked 99 towns of 2,500–10,000 people in Iowa (2020 Census population; towns with 2,500+ people have pages so far). Lifestyle measures are The Town Files lifestyle rankings, built from federal demographic, school, crime and housing data (2025), shown as percentiles. Only towns better than 60% of their peers on this measure qualify, so lists can be shorter than 25. Sources: