Cost of living answer

Cost of Living in Spencer, IA

Cost of Living in Spencer, IA has an overall index of 81, 19% below the U.S. baseline of 100. The typical home value is $199,945 (Zillow ZHVI, Aug 2026); typical monthly rent is $927 (HUD FY2027 2-bedroom FMR, Clay County FMR area); and median household income is $59,667 (Census ACS 2024).

Cost index: committed city housing/rent inputs and BEA 2024 state nonmetro price parities. Home value: Zillow ZHVI market signal as of 2026-08. Rent: HUD FY2027 2-bedroom FMR (40th-percentile recent-mover gross rent), Clay County FMR area. A place-level signal, not a personal affordability decision or financial recommendation.

Check your household fit Compare Spencer

Cost vs U.S.19% belowModeled index 81 · Zillow Aug 2026 / HUD FY2027 2-bedroom FMR / ACS 2024 / BEA 2024

Typical rent$927/moHUD FY2027 2-bedroom FMR · Clay County FMR area

Typical home value$199,945Zillow ZHVI · Aug 2026

Median household income$59,667Census ACS · 2024 place estimate

Market PressureLower

Rent and home prices are comparatively balanced with local income. This describes the local market, not your household.

Rent pressure

19%

Typical annual rent divided by local median household income.

Buy pressure

3.4x

Typical home value divided by local median household income.

Common questions

What living in Spencer costs, and what the data does and does not explain.

Four questions readers ask most, answered from the committed sources below. Every figure keeps its source, vintage, and limitation; none of it is personal financial advice.

Cost outside housing

How do non-housing costs here compare with the nation?

Day-to-day non-housing costs here run about 5% below the U.S. baseline.

Non-housing index95100 = U.S. baseline

Goods9620% weight

Services9820% weight

Utilities8810% weight

The index weights goods 96 (20%), services 98 (20%), and utilities 88 (10%) over the non-housing half of the model, where utilities show the widest gap below the national baseline at 88. It excludes rent and home prices, so it is not the overall Regional Price Parity and not the overall cost index. Source: BEA 2024 national nonmetropolitan proxy (one shared value set for every unmatched place in this snapshot, so it is not state- or city-specific).

Housing vs state and nation

Is housing here above or below the state and the country?

Typical home value$199,945Zillow ZHVI

Typical rent$927/moHUD FMR

The typical home value is $199,945 (Zillow ZHVI, Aug 2026). It is 13% below the $229,412 median across Iowa cities in this dataset, and 34% below the committed $303,400 U.S. baseline used site-wide (Census ACS 2019–2023).

The typical monthly rent is $927 (HUD FY2027 2-bedroom FMR, Clay County FMR area (40th-percentile recent-mover gross rent)). It is 9% below the $1,016 median across Iowa cities in this dataset, and 31% below the committed $1,348 U.S. baseline used site-wide (Census ACS 2019–2023).

The Iowa median is a cross-city statistic over the 86 committed city home values and 86 committed city rents (Zillow Aug 2026, HUD FY2027, or Census ACS 2024 as matched per place). It is not a statewide household median and it is not appraised market data. U.S. baselines are Census ACS 2019–2023 5-Year national medians used across this site ($303,400 home value; $1,348 monthly gross rent), and have not been refreshed to the ACS 2024 city vintage or the Zillow Aug 2026 vintage. Any city-to-national gap therefore mixes vintages.

Why the numbers look like this

Which local signals explain the difference?

The committed figures are broadly in line with their baselines, so no signal stands out here.

Rent-to-income ratioNear baseline
19% · Typical rent equals about 19% of local median household income (HUD FY2027 2-bedroom FMR Clay County FMR area rent × 12 ÷ Census ACS 2024 median household income). These are two place-level aggregates, not a measured household or renter burden. The Census ACS 2019–2023 5-Year national medians imply 21%.
Baseline: 21% implied by Census ACS 2019–2023 5-Year national medians
Price-to-income ratioNear baseline
3.4x · The typical home value is 3.4 times local median household income (Zillow ZHVI Aug 2026 home value ÷ Census ACS 2024 median household income). This is a place-level ratio, not an individual affordability test. The Census ACS 2019–2023 5-Year national medians imply 3.9x.
Baseline: 3.9x implied by Census ACS 2019–2023 5-Year national medians
Vacancy rateNear baseline
8.6% · 8.6% of all housing units here are reported vacant in Census ACS 2024. That counts every vacant unit, including seasonal, occasional-use, and other vacant homes, and it is not current for-sale or for-rent inventory. The population-weighted mean across the committed city dataset is about 8%.
Baseline: about 8% committed city-sample mean
Owner shareAbove baseline
68.1% · 68.1% of occupied units are owner-occupied in Census ACS 2024, against a committed national owner-occupied share of 64.6% (Census ACS 2019–2023 5-Year national medians). This describes tenure mix — more owners usually means a smaller rental stock, not by itself higher or lower pressure.
Baseline: 64.6% committed national owner-occupied share

These are associations inside one committed snapshot, not causal evidence. The dataset has no current listings, pending sales, sale timelines, or construction, migration, income-growth, and unit-mix fields, so nothing here proves or disproves a housing shortage: a low vacancy rate or a high rent-to-income ratio can have several explanations. Treat the figures as context for your own search, not as a cause.

Monthly budget by household size

What might a family of five spend per month here?

Estimated monthly cost for a household of five in Spencer: $5,977, of which $927 is the exact typical rent and $5,050 is modeled non-housing spending. Everyday non-housing costs here are 5% below the U.S. baseline.

For five people the estimate is housing $927 + non-housing $5,050 = $5,977 per month, or about $1,195 per person before taxes and debt.

Estimated monthly cost, before income tax, debt payments, and savings
Household size	Housing (typical rent)	Non-housing	Estimated total	Per person
1 person	$927	$1,637	$2,564	$2,564
2 people	$927	$2,659	$3,586	$1,793
3 people	$927	$3,532	$4,459	$1,486
4 people	$927	$4,320	$5,247	$1,312
5 people (example)	$927	$5,050	$5,977	$1,195
6 people	$927	$5,738	$6,665	$1,111

Formula: Monthly estimate = housing base + ($3,272 × (household size ÷ 2.5)^0.7 × (non-housing index ÷ 100)). The housing base is this city's exact typical monthly rent; $3,272 is the Census ACS 2019–2023 5-Year national medians median household income ÷ 12 × the model's 50% non-housing basket share.

Inputs: housing base $927 (HUD FY2027 2-bedroom FMR, Clay County FMR area); non-housing index 95 (BEA goods/services/utilities); national median household income $78,538 (Census ACS 2019–2023 5-Year national medians).

Assumptions and limitations behind this table

Model assumptions

The Census ACS 2019–2023 5-Year national medians median household income is treated as a 2.5-person reference household whose non-housing share of the basket is 50% (goods 20% + services 20% + utilities 10%).
Household size is scaled with an economy-of-scale exponent of 0.7. That exponent is a modeling assumption, not a measured equivalence scale.
Housing is held at the same exact typical rent for every household size. Larger households often rent larger units, which this estimate does not model.
The non-housing index is applied as a price level only; it does not change how much a household consumes.

Limitations

This is a modeled planning estimate, not a measured household budget, a quote, or personal financial advice.
It excludes income tax, sales tax, property tax, debt payments (including student loans and car payments), retirement saving, and one-time moving costs.
Zillow, HUD FMR (a 2-bedroom program benchmark for the 40th-percentile recent-mover gross rent, not a market median), and Census values are place- or area-level estimates with sampling error and top-coding, not exact local prices.
BEA price parities are metro-area values, or one national nonmetropolitan proxy shared by every unmatched place — never city- or state-specific.
The income baseline is one committed national value (Census ACS 2019–2023 5-Year national medians) and does not vary by city or by household composition (adults versus children).

Housing and rent: Zillow ZHVI Aug 2026 home value; HUD FY2027 2-bedroom FMR, Clay County FMR area rent. Top-coded ACS values stay thresholds, never exact medians. Non-housing: BEA 2024 goods, services, and utilities price parities (national nonmetropolitan proxy). Why: rent HUD FY2027 2-bedroom FMR, Clay County FMR area, home value Zillow ZHVI Aug 2026, plus Census ACS 2024 income, vacancy, and owner-occupancy fields. National baselines: Census ACS 2019–2023 5-Year national medians (not refreshed to ACS 2024 or Zillow Aug 2026), so city-to-national gaps mix vintages. Budget: modeled from the committed national median household income and this city's exact rent and BEA non-housing index; assumptions and exclusions are listed with the table. Budget is not produced when rent is top-coded.

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City details

Inspect the numbers when you need them.

Overall cost index81100 = U.S. baseline

Goods964% below baseline

Services982% below baseline

Utilities8812% below baseline

Alternatives worth comparing

Other Iowa cities with a useful tradeoff.

Recommendations require usable housing and income data and exclude very small places for a city of this scale.

Marshalltown, IALower home-price pressure · Similar population scaleRent burden18%Home / income2.6x Compare

Mason City, IALower home-price pressure · Similar population scaleRent burden17%Home / income2.5x Compare

Marion, IALower rent burden · Same-state comparisonRent burden17%Home / income3.2x Compare

Ottumwa, IALower home-price pressure · Similar population scaleRent burden21%Home / income2.1x Compare

Bettendorf, IASame-state comparisonRent burden17%Home / income3.4x Compare

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Frequently asked questions about Spencer

Mortgage benchmark baseline 2026-09-24 is past its weekly update cadence; a newer official vintage exists but is not reflected.

Living in Spencer

Is Spencer, IA an affordable place to live?+

Yes — everyday expenses in Spencer run about 19% below the US average (Cost Index: 81). Housing is especially affordable: the median home is valued around $199,945, compared to the $303,400 national median. Monthly rent is $927, versus $1,348 nationally.

How does Spencer fit a household housing budget?+

Start with housing. Typical monthly rent is $927, while local median household income is $59,667. That implies a rent-burden proxy of about 19% of income. This HUD gross rent already includes tenant-paid utilities; other living costs are not included. Use that as a planning signal for whether the place looks manageable under your own household assumptions.

How much are taxes in Spencer, IA?+

Iowa uses an approximate state-income-tax planning model; 3.8% is top marginal-rate context from the tax snapshot. Applying the 1.33% state-level effective owner-occupied proxy to a home worth $199,945 gives a planning estimate near $2,659 per year; it is not a city, county, parcel, or individual tax bill. State plus average local sales-tax context is around 6.94%.

How much does it cost to rent in Spencer, IA?+

The typical monthly rent in Spencer is around $927. That's roughly 31% lower than the $1,348 national median. For comparison, the median home value here is $199,945, so buyers should also factor in mortgage payments, property taxes, and insurance.

How much does a house cost in Spencer, IA?+

The typical home value in Spencer is $199,945. With 20% down and the committed 7.03% national 30-year fixed benchmark as of 2026-09-24, principal and interest are roughly $1,067/month before property tax and insurance. This is a planning estimate, not a local lender quote. Baseline is past its weekly update cadence; a newer official vintage exists but is not reflected. About 68% of residents here own their homes.

Are groceries and utilities expensive in Spencer?+

Grocery prices in Spencer are about average compared to the rest of the US (index: 96, where 100 is the national average). Utility bills (electricity, gas, water) are below average (index: 88). Overall, these everyday costs shouldn't cause major surprises if you're moving from another similarly-sized US city.

What is Spencer, IA like to live in?+

Spencer is a small town with a population of about 11,400. The median age of residents is 41.4, which is close to the national median. The local poverty rate is 14.02%, near the national average of 12.4%.