A+
7%
Overall NAT. AVG.
19%
Goods & Services NAT. AVG.
7%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Cedar Falls Iowa National
Cost of living9390100
Goods & Services8296100
Groceries9597100
Health care10299100
Housing10773100
Transportation9698100
Utilities8596100

An Overview of Cost of Living in Cedar Falls, IA

Knowing the cost of living in Cedar Falls allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Cedar Falls stands at 93, marking it 7% lower than the national average.

The cost of living in Cedar Falls closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Cedar Falls can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

Everyday staples like clothes, toiletries and entertainment expenses play a big role in your total living costs. But in Cedar Falls, these goods are 18.5% cheaper than the national average. So, you can enjoy what you need and love without emptying your wallet. Plus, you'll have more cash to put towards your savings or any other money goals you have, which is a real boost for your financial well-being.

Is Cedar Falls Affordable?

Is Cedar Falls affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Cedar Falls, for instance, where the median home price falls 10.6% higher than the national average, and monthly rent rates are 0.5% lower than usual. Additionally, median income levels contribute to the equation, with Cedar Falls flaunting a median household income of $64,809, 17.1% higher than the national norm.

What Factors can Influence the Cost of Living in Cedar Falls?

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Cedar Falls, the general sales tax rate starts at 6%, and income tax rates begin at 0.33%.

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Cedar Falls, the transportation index is 4.3% lower than the national average.

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Cedar Falls, the groceries index is 5.1% lower than the national average.

Where is the Data From?

The Cedar Falls cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Cedar Falls is 4% higher than the Iowa average
  • The cost of living in Cedar Falls is 7% lower than the national average
  • Cedar Falls housing is 7% higher than the national average
  • Iowa general sales tax is 18% higher than the national average
  • Iowa state income tax is 69% higher than the national average

Most Affordable Places to Live in and Around Cedar Falls

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Compare Cedar Falls, IA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$92,644$7,720$2,162$2,780
      Renters$38,441$3,203$897$1,153
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Cedar Falls, IA, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Cedar Falls homeowners, is $92,644. This would allow for a maximum of $2,162 per month to be spent on housing costs. For renters, the median monthly income is $38,441 which would result in a maximum of $897 to be spent on rental costs.

      Iowa Sales Tax

      State General Sales Tax With Max Surtax
      Iowa 6% 7%

      Iowa Income Tax

      State Income Tax (Low) Income Tax (High)
      Iowa 4.4% 6%

      Goods & Services

      Item Cedar Falls National avg. Difference
      Haircut $19.76$24.2618.6%
      Beauty Salon $29.46$45.5635.3%
      Toothpaste $3.80$3.702.5%
      Shampoo $1.23$1.283.7%
      Movie $12.84$12.135.8%
      Bowling $11.50$18.0036.1%

      Groceries

      Item Cedar Falls National avg. Difference
      Ground Beef $5.96$5.842.0%
      Fried Chicken $1.41$1.5710.1%
      Milk $4.80$4.672.8%
      Potatoes $4.85$4.931.7%
      Pizza $10.99$12.099.1%
      Beer $9.73$10.416.5%

      Health Care

      Item Cedar Falls National avg. Difference
      Optometrist $159.20$125.6826.7%
      Doctor $151.67$135.7811.7%
      Dentist $100.97$113.2910.9%
      Ibuprofen $10.30$10.653.3%
      Lipitor $486.24$468.603.8%

      Housing

      Item Cedar Falls National avg. Difference
      Home Price $204,300.00$184,700.0010.6%
      Avg. Mortgage Payment $2,073.36$2,346.6911.6%
      Apartment Rent $944.00$949.000.5%

      Transportation

      Item Cedar Falls National avg. Difference
      Gasoline $3.40$3.461.9%
      Tire Balancing $53.77$59.9210.3%

      Utilities

      Item Cedar Falls National avg. Difference
      All Electricity $147.73$193.9923.8%
      Phone $187.56$192.252.4%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Morrison, IA1457525.0%
      New Hartford, IA7897921.1%
      Washburn, IA5247920.7%
      Evansdale, IA4,7678119.3%
      Stout, IA2148119.2%
      Cedar Falls, IA40,750936.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Buffalo Grove, IL40,80412727.3%
      Wilkes-Barre, PA40,8058613.9%
      Brant, ON40,692n/a 
      Bullhead City, AZ40,8088812.4%
      Maplewood, MN40,6841054.8%
      Cedar Falls, IA40,750936.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.