Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Iowa and Tennessee. Updated for 2026.
Iowa wins 5 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 Tennessee. 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 $731/month ($8,772/year) compared to Tennessee, based on median home prices with identical loan terms.
Iowa offers meaningfully lower home prices than Tennessee, with median prices running 38% less ($130K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Tennessee may find Iowa far more accessible, particularly when combined with local down payment assistance programs.
Tennessee has a moderate property tax advantage at 0.56% versus Iowa's 1.52%. While the rate gap of 0.96% may seem small, it translates to an annual difference of approximately $1,288 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $10K in savings.
Insurance costs favor Iowa at $1,800/year versus $2,400/year in Tennessee, a difference of $600 annually. While not the largest cost factor, this adds up to over $6K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Both states offer down payment assistance for first-time buyers. Iowa's IFA FirstHome provides $2,500 grant, while Tennessee's THDA Great Choice Home Loan offers Up to $25,000 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 $130K less than Tennessee on average. That translates to roughly $731 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.