# Iowa

### Summary

Iowa state is facing challenges to housing affordability. For every 100 low-income renter households, there are 85 units available that are affordable to them. The median household income in the state is $37,573 whereas the median rent in the state is $689. Currently, the state is short over 13,147 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

28.4% share of renter households  
40.3% share of low-income households  
39.6% share of rent-burdened households

### Renter population data

| Households            | % share |
|----------------------|---------|
| Renter households     | 362,924 | 28.4%  |
| Homeowner households   | 912,969 | 71.6%  |
| Total households      | 1,275,893 | 100.0% |

| Households            | % share |
|----------------------|---------|
| Extremely low-income (≤30% AMI) | 45,939  | 12.7%  |
| Very low-income (31-50% AMI)  | 43,356  | 11.9%  |
| Low-income (51-80% AMI)        | 57,041  | 15.7%  |
| All low-income households (<80% AMI) | 146,336 | 40.3%  |

### Rent-burdened households

| Households            | % share |
|----------------------|---------|
| Moderately rent-burdened            | 72,432  | 20.0%  |
| 30.0–34.9%      | 27,044  | 7.5%   |
| 35.0–39.9%      | 18,898  | 5.2%   |
| 40.0-49.9%      | 26,490  | 7.3%   |
| Severely rent-burdened           | 71,186  | 19.6%  |
| All rent-burdened households      | 143,618 | 39.6%  |

### Affordable housing shortage

|                    | Amount ($)      |
|-------------------|-----------------|
| Median household income in 2010 | 26,729        |
| Median household income in 2021 | 37,573        |
| Increase (2010–2021) | 40.6%         |

|                    | Amount ($)      |
|-------------------|-----------------|
| Median rent in 2010 | 489           |
| Median rent in 2021 | 689           |
| Increase (2010–2021) | 40.9%         |

|                | Units    |
|----------------|----------|
| Supply (current stock)     | 76,148   |
| Demand (total units needed) | 89,295   |
| Shortage         | 13,147   |
| Total shortage   | 13,147   |
| Supply/Demand ratio | 85.3%   |

### Finance institutions

#### Iowa Finance Authority

Iowa Finance Authority  
1963 Bell Avenue, Suite 200  
Des Moines, IA 50315

**List of loan programs**
- [Community-Based Housing Revolving Loan Fund](https://www.iowafinance.com/programs-for-property-developers/community-based-housing-revolving-loan-fund/)
- [Home and Community-Based Revolving Loan Program](https://www.iowafinance.com/programs-for-property-developers/home-and-community-based-revolving-loan-program/)
- [HOME Program](https://www.iowafinance.com/programs-for-property-developers/home-program/)
- [Housing Tax Credit Program](https://www.iowafinance.com/programs-for-property-developers/housing-tax-credit-program/)
- [Iowa Title Guaranty](https://www.iowafinance.com/iowa-title-guaranty/)
- [Main Street Loan Program](https://www.iowafinance.com/main-street-loan-program/)
- [Multifamily Loan Program](https://www.iowafinance.com/programs-for-property-developers/multifamily-loan-program/)
- [National Housing Trust Fund](https://www.iowafinance.com/programs-for-property-developers/national-housing-trust-fund/)
- [Rural Lot Purchase Program](https://www.iowafinance.com/programs-for-property-developers/rural-lot-purchase-program/)

### QAP document (Qualified Allocation Plan)

The QAP is a document that states, and a few local agencies must develop in order to distribute federal Low-Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.  
[Download document](/content/housingcount/us-states/iowa#/index.html)

### Housing news

**Key Takeaways:**

- **Lower Mortgage Rates**: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- **Home Sales**: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- **Ongoing Supply Issues:** Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.