6 Best Starter Towns In Iowa For First-Time Homeowners

First-time homebuyers who begin their search in Iowa might be surprised to find that this sometimes daunting task is surprisingly fun and affordable. According to Zillow, as of February 2026, the median home value in Iowa is $224,843. The six starter towns selected here all have median home values below that already reasonable average. These Iowa towns all feature a strong sense of community and small-town options where first-time homeowners can put down roots without overstepping their budgets.

Newton

The county seat of Jasper County, Newton, is in central Iowa, 30 miles east of the capital city of Des Moines. Its population, at 15,700, is much lower than that of the larger neighboring city, and its median home value of $192,581 is also more attractive than Des Moines' median home value. First-time homeowners who want to live in a small town, yet still be close to the big city, might consider settling in Newton.

Newton is home to the well-respected MercyOne Newton Medical Center, an inpatient facility offering cancer care, neurology, and emergency care, among other services. Auto racing enthusiasts will enjoy the Iowa Speedway, a short track that hosts many NASCAR and IndyCar racing events. The town comes together each June for Newton Fest, a celebration of arts, food, music, and history in Newton. The Newton Farmers Market is held in the downtown area at Legacy Plaza Green Space every Tuesday from June through September, and is a popular meeting spot for townsfolk and visitors.

Burlington

Situated along the bluffs of the Mississippi River in Southeastern Iowa, the town of Burlington is the county seat of Des Moines County, and is just across the river from Gulfport, Illinois. In this town of about 24,000 residents, the median home value is an affordable $120,215, perfect for those buying their first home.

Crapo Park in Burlington was established in 1895 and contains 85 acres, including an arboretum with over 200 varieties of shrubs and trees. Musical events are presented in the park's band shell on Sunday evenings in the summertime. One of Burlington's most famous landmarks is Snake Alley, built in 1894 to connect the town's residential and commercial districts. Robert Ripley of "Ripley's Believe It Or Not!" called the alley one of the most crooked, unbelievable spots in the country. Going into Burlington's downtown area, you'll find the Jefferson Street Farmers Market, which sells local produce and crafts on Thursday evenings from May through September. Burlington sponsors annual events to bring the community together, such as the West Burlington Fourth of July Celebration.

Maquoketa

The small town of Maquoketa, the Jackson County seat, is in northeastern Iowa, about 30 miles from Dubuque. Described as a "micro-urban environment," its population just over 6,000. The median home value of $190,426 attracts many prospective homeowners to move to Maquoketa.

New homeowners with children will be pleased to know that the Maquoketa Valley Community School District ranks among the top 20% of public schools in Iowa in academic proficiency. Eastern Iowa Community College has a Maquoketa Center adjacent to the high school that offers a variety of academic and trade programs. When families are looking for outdoor activities, Maquoketa Caves State Park is one of Iowa's most unique attractions, with caves, bluffs, and a six-mile trail system throughout the park. Maquoketa's Summer Concert Series is held in Glovik Community Park from May through September, and provides family-friendly entertainment that draws townspeople together.

Charles City

The county seat of Floyd County on the Cedar River in northeastern Iowa, Charles City is home to just over 7,200 residents. It is 35 miles from the larger Mason City, and is equidistant from Des Moines and St. Paul, Minnesota (about a two-and-a-half-hour drive to each). The median home value of $133,727 has prompted many to call Charles City home.

Charles City houses the Floyd County Medical Center, a critical access hospital and rural health clinic that performs above state averages. Charles City Whitewater Park is the state's first whitewater park and takes advantage of the town's placement along the Cedar River. In addition to water activities, the downtown park has a stone amphitheater, play area, trail, and picnic area. Each year at the end of May/beginning of June, the town holds the Charles City Challenge Whitewater Festival, including activities, food, and music. The Charles City Arts Center within the town's historic Carnegie Library has monthly art exhibits and free admission.

Webster City

Webster City is the county seat of Hamilton County in north-central Iowa, 20 miles from Fort Dodge and about an hour from Des Moines. The median home value in this town of just over 7,700 people is $144,702. With the town's motto being, "Live Here, Thrive Here," it is evident why many first-time homeowners may decide to call Webster City home.

Webster City's Nokomis Park/Middleton Sports Complex is a popular year-round hub of activity for townsfolk of all ages. It contains two softball fields, an ice-skating rink, a volleyball court, playground, and canoe access to the Boone River. The Van Diest Medical Center in town has earned top 100 hospital recognition and a 5-star rating from the Centers for Medicare & Medicaid Services (CMS). Built in 1906, the Webster Theater in downtown Webster City shows films on one of the biggest single screens in north-central Iowa. In the summer months, Webster City's downtown area hosts Market Nights on Thursdays, featuring local produce, handmade crafts, live music, and food trucks.

Jefferson

The town of Jefferson, home to just over 4,100 people, is the Greene County seat in west-central Iowa along the North Raccoon River. The larger town of Boone is 30 miles away. The median home value in Jefferson is $168,444. First-time homebuyers choose Jefferson for reasons such as its tight-knit community and family-friendly atmosphere.

The Greene County High School and Career Academy, opened in 2020, offers recognized resources and educational opportunities partnered through Iowa Central Community College. Families can enjoy outdoor recreation at a variety of town parks, including Daubenediek Park, in which a disc golf course, walking trails, and picnic area is contained. The Greene County Iowa Fair is held in Jefferson each July, and features horse events, livestock, music, food, and more. Those searching for a town-centered event should attend the annual Bell Tower Festival, held in June at the town's historic 14-story Mahanay Bell Tower, complete with a parade, car show, race, activities, food, and music.

Your First Home Starts in Iowa

If you are searching for welcoming neighborhoods with access to parks, great schools, quality healthcare, and tight-knit communities, you can't go wrong in selecting one of these Iowa towns to purchase your first home. Each of these gems combines value with livability. Whether you're searching for a quiet place to start a family or a friendly community with room to grow, these towns provide an inviting and affordable place to begin your journey into homeownership.