Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Iowa and Montana. Updated for 2026.
Iowa wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $210K and lower overall costs, Iowa offers meaningful savings compared to Montana. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Iowa saves you approximately $1,359/month ($16,308/year) compared to Montana, based on median home prices with identical loan terms.
There's a dramatic price gap between these two states. Homes in Iowa cost 51% less than in Montana — that's a difference of $220K on the median home. For buyers relocating from Montana to Iowa, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Montana home could fund a much larger down payment in Iowa, potentially eliminating PMI and reducing your monthly payment dramatically.
Montana has a moderate property tax advantage at 0.74% versus Iowa's 1.52%. While the rate gap of 0.78% may seem small, it translates to an annual difference of approximately $10 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $80 in savings.
Closing costs are a one-time but significant expense. Montana averages $6K in closing costs (1.5% of purchase price) while Iowa averages $2K (1%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Iowa's IFA FirstHome provides $2,500 grant, while Montana's MBOH Regular Bond Program offers Up to $15,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Iowa homes cost $220K less than Montana on average. That translates to roughly $1,359 less per month in total housing costs if you choose Iowa. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.