Median one-bedroom rent across the cities we track is $870 in Iowa versus $1,126 in Minnesota. Overall, Iowa runs roughly 23% cheaper on rent than Minnesota, its main day-to-day cost driver.
Median household income across tracked cities is $63,966 in Iowa and $80,269 in Minnesota — about 20% higher in Minnesota. Iowa has a top state income tax rate of 3.80% and a 6% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
State Taxes
Sales Tax
6%
6.875%
+0.9 pp in Minnesota
Income Tax (top rate)
3.80%
9.85%
+6.0 pp in Minnesota
Housing (median across tracked cities)
Median 1BR Rent
$870
$1,126
+29% in Minnesota
Median Home Value
$183,700
$287,500
+57% in Minnesota
Income (median across tracked cities)
Median Household Income
$63,966
$80,269
+25% in Minnesota
Climate (median across tracked cities)
Avg Annual Temperature
50.9°F
47.1°F
+3.8°F in Iowa
Iowa vs Minnesota — FAQ
- Is it cheaper to live in Iowa or Minnesota?
- Iowa is cheaper on rent — its median one-bedroom of $870 runs about 23% below Minnesota's $1,126, based on the cities we track in each state.
- How much more do you need to earn to live in Iowa than in Minnesota?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $35,000 a year in Iowa versus $45,000 in Minnesota.
- Which has lower taxes, Iowa or Minnesota?
- Iowa has a top state income tax rate of 3.80% and a 6% state sales tax. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Iowa/Minnesota — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.