Cost of Living in Ottumwa

Ottumwa's cost of living runs genuinely low in housing, backed by Iowa's low flat income tax, though property tax runs meaningfully above both national and statewide norms.

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Genuinely affordable housing

Ottumwa's typical home value ran approximately $109,760, up a modest 3.1% year-over-year -- among the most affordable of this project's Iowa Tier A markets (base record).

Iowa's low flat state income tax

Iowa's real, current flat 3.8% state income tax applies statewide (base record).

Ottumwa's above-both-medians property tax rate

Ottumwa's own median effective property tax rate ran approximately 1.85% -- above both the national median (~1.02%) and Iowa's own elevated statewide median (~1.55%), and even above Wapello County's own broader median (1.66%) (base record).

Key takeaways

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Last reviewed: 2026-08-27. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.