Compare Iowa City, IA mortgage rates and fees from top lenders. Review free, personalized mortgage rates based on your specifc loan amount, program and other factors. Easily compare APRs, closing costs and monthly payments to find the lowest mortgage rates in Iowa City.
We recommend that you contact at least five lenders as shopping multiple lenders is the best way to save money on your mortgage in Iowa City. Plus, shopping lenders is free and there is no obligation.
August 28, 2025
Below we provide helpful information on the real estate market, home prices and housing affordability in Iowa City. Understand how much you need to earn to afford a home in Iowa City, including the mortgage you need to qualify for. Review the monthy payment so you can determine if owning a house in Iowa City fits your budget. This information is based on proprietary analysis you can only find on FREEandCLEAR and we offer it to help you decide if living in Iowa City is right for you.
The median home value for Iowa City, IA (Johnson County) is $310,816
Based on current mortgage rates and a 10% down payment, you need to make $64,841 per year to buy the median priced home in Iowa City
With this income, you could qualify for a $279,734 mortgage, assuming your monthly debt expense is reasonable
Based on this loan amount, the monthly mortgage payment required to buy the median priced home in Iowa City is $1,502
The median household income for Iowa City, IA (Johnson County) is $68,114
Based on this income, you can afford a home valued at approximately $326,505
The home price you can afford to buy based on household income in Iowa City is 105% of the median home value which means housing prices are average. Iowa City (Johnson County) ranks 99 out of 99 counties in Iowa and 2,756 out of 3,142 counties in the United States for housing affordability.
According to the FREEandCLEAR Housing Affordability Index, the housing market in Iowa City, IA is average
Mortgage limits affect your loan terms, mortgage program eligibility and what price home you can afford. Review the loan limits for Iowa City (Johnson County) below.
Conforming loan limits for Iowa City, IA
FHA loan limits for Iowa City, IA