Iowa

How Iowa ranks among the states

Iowa ranks 42nd on the State Distress Index. Its strongest protection in this comparison is jobs: unemployment averaged 3.2% from June through August 2026, below the U.S. figure of 4.1%. Debt also runs low, but the state average does not describe every county.

The score rose through 2024, then eased

Is Iowa expensive? Rent is low, but that is only part of the answer

Iowa’s median gross rent was $972 a month in the U.S. Census Bureau’s 2020–2024 survey, against $1,413 nationally. That puts the state 7th lowest among the states and D.C. The measure includes rent and utilities; it does not price food, transport or a home purchase.

The share of Iowa renters paying at least half their income for housing was 21.7% in 2024, lower than the U.S. figure of 26.1%. Median rent and severe burden measure different groups, so the first figure does not explain the second.

How Iowa compares with its neighbors

South Dakota’s median rent, $946, is lower than Iowa’s. The other bordering states shown in the October 2026 figures are higher. Local rents can differ sharply from a state median; the county list below shows where Iowa’s financial strain is concentrated.

Which Iowa counties are poorest, and which face the most distress?

Decatur County has Iowa’s highest poverty rate, 18.1%, in the Census Bureau’s 2024 estimate. Wapello County has the highest County Distress Index score, 63. The two measures answer different questions: poverty is an income threshold; the index adds debt, jobs and renters’ housing costs.

Every Iowa county, by score

84 of Iowa’s 99 counties score below 30. Only 3 reach 50 to 69; none score 70 or more. That wide light group is why the darker counties deserve a closer look.

All Iowa counties, ranked →

How is Iowa’s economy doing? Jobs are steadier than the nation’s

Iowa’s unemployment rate was 3.2% in August 2026, below the U.S. rate of 4.1%. The state’s rate was 3.5% a year earlier. A low rate does not describe wages or the hours people can get.

The chart traces Iowa’s jobless rate beside the country’s over time. It helps separate a steady recent figure from earlier recessions.

The income measure tells a different story

Iowa’s median household income was $75,623 in 2024, below the U.S. median of $81,604. Employment and income are related, but a jobless rate does not tell us how much work pays.

Is Iowa a poor state? Its poverty rate is below the U.S. rate

In 2024, 11.2% of Iowans lived below the poverty threshold, compared with 12.1% nationally. The Census Bureau’s estimate ranks Iowa 24th lowest among the states and D.C. The county figures below show why a statewide answer is incomplete.

The yearly poverty estimates move over time. The chart below uses the same Census series for Iowa and the U.S.; gaps in the early years reflect years the bureau did not publish comparable state estimates.

Food benefits count a different population

The U.S. Department of Agriculture counted 7.5% of Iowa’s population receiving SNAP in July 2026. SNAP eligibility does not match the Census poverty threshold, and the two figures are from different periods. See the federal SNAP data →

How many Iowans are behind on bills?

In the first quarter of 2025, 13.1% of Iowans with a credit record had a debt at least 90 days late, below the U.S. figure of 17.2%. The Federal Reserve Bank of Philadelphia measures people, not the dollars they owe.

The comparison below separates kinds of payment trouble. Iowa falls below the nation on each, though the borrower groups differ.

Iowa is below the U.S. on these measures of payment trouble

Share of borrowers seriously behind on each loan type, or of people with a debt in collections, first quarter of 2025.

People with a debt in collections

Iowa 11.2% U.S. 13.2%

Card borrowers 90+ days late

Iowa 10.7% U.S. 13.5%

Car loan borrowers 90+ days late

Iowa 6.2% U.S. 8.5%

Mortgage borrowers 90+ days late

Iowa 0.9% U.S. 1.2%

Among the states and D.C., Iowa ranks tied for 24th lowest for collections, 18th lowest for card trouble, 20th lowest for car loans and tied for 15th lowest for mortgages. Each percentage has its own borrower group.

The New York Fed counts dollars instead of people

The Federal Reserve Bank of New York found that, at the end of 2025, Iowa household debt averaged $47,410 per person with a credit report, against $63,200 nationally. Card balances averaged $3,250, compared with $4,350 for the country. A smaller balance does not rule out trouble paying it.

Its separate late-payment measure counts the share of money owed that is at least 90 days past due. The table sets the end of 2025 beside the end of 2019.

What changed in Iowa in the past year

The past year brought changes to food benefits, local taxes and health coverage. These dates describe published actions; they do not explain the index score.

1. Oct. 15, 2026

   September unemployment holds steady

   Iowa Workforce Development reported that the September unemployment rate held at the same level as August.

   Iowa Workforce Development, October 2026 release

2. July 2, 2026

   Iowa reverses its SNAP food restrictions

   Iowa Health and Human Services said stores should return to federal food eligibility rules after a direction from the U.S. Department of Agriculture.

   Iowa Health and Human Services, SNAP update

3. July 1, 2026

   New local sales taxes begin in Johnson County cities

   The Iowa Department of Revenue listed new local option sales taxes in Coralville, Iowa City, North Liberty, Oxford and Shueyville. A statewide cost-of-living ranking would miss local differences like these.

   Iowa Department of Revenue, local tax changes

4. Jan. 1, 2026

   Iowa uses a flat state income tax rate

   The Department of Revenue said its flat individual income tax rate took effect for the 2026 tax year. A tax rule is separate from the household income measure in the October 2026 figures.

   Iowa Department of Revenue, 2026 tax rates

Iowa bankruptcy filings rose during 2025

U.S. Courts recorded 3,738 bankruptcy cases in Iowa during 2025, up 16.7% from 2024. That is 115.4 filings per 100,000 residents, below the U.S. rate of 166.3. Filing is a legal event, not a measure of everyone who is struggling.

The court counts include different bankruptcy chapters and both household and business cases. See the national bankruptcy series →

How does foreclosure work in Iowa?

Iowa generally uses a court process for mortgage foreclosure. The timing and possible right to redeem depend on the route used and the case. The Iowa foreclosure guide explains those routes and links the governing law.

The federal Homeowner Assistance Fund awarded Iowa $50.0 million. Through the first quarter of 2026, the program reported helping 4,276 households. Those program counts do not tell whether a particular homeowner can get help now (U.S. Department of the Treasury).

What do Iowa mortgage complaints describe?

The Consumer Financial Protection Bureau has published 1,513 Iowa mortgage complaints in this series. Payment processing is the most frequent named issue, with 436 complaints. Each report is the consumer’s account; the bureau does not verify every claim.

What to watch before the next edition

These scheduled changes and releases may affect how the next edition reads.

1. Oct. 28, 2026

   Metro area employment data

   The U.S. Bureau of Labor Statistics plans to release September employment and unemployment for metropolitan areas. Those figures can add local context to Iowa’s state rate.

   U.S. Bureau of Labor Statistics release calendar

2. Nov. 20, 2026

   October state jobs data

   The federal release calendar lists October state employment and unemployment figures for this date.

   U.S. Bureau of Labor Statistics release calendar

3. Dec. 1, 2026

   Medicaid community engagement rules for new applicants

   Iowa Health and Human Services says new applicants in the Iowa Health and Wellness Plan will face the new requirements from December. Existing members have a later renewal timetable.

   Iowa Health and Human Services, program requirements

Where Iowa ranks highest and lowest

A single rank hides the different ways Iowa compares. These measures put jobs, income, housing and debt on their own scales.