Side-by-side comparison of home prices, mortgage payments, and housing costs between Ames and Council Bluffs, Iowa. Using Iowa's 1.52% property tax rate and $1,800/year insurance. Updated for 2026.
Council Bluffs is significantly more affordable than Ames, with homes priced 34% lower on average. That translates to $660/month in savings on your total housing payment. For budget-conscious buyers in Iowa, Council Bluffs offers a much more accessible path to homeownership.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Iowa's 1.52% property tax rate.
Buying in Council Bluffs saves you approximately $660/month ($7,920/year) compared to Ames, based on median home prices with identical loan terms.
Council Bluffs is the better choice for first-time buyers, with a median price of $175K versus $265K in Ames. That's $90K less to save for a down payment. You'd need roughly $6K for an FHA 3.5% down payment in Council Bluffs, compared to $9K in Ames. Iowa offers the IFA FirstHome program ($2,500 grant) which applies in both cities.
Council Bluffs has the better price-to-rent ratio at 16.6x versus 20.4x in Ames. A lower ratio generally signals better rental income relative to purchase price. Average rent in Council Bluffs is $880/month on a $175K median home, making it a stronger candidate for buy-and-rent investors.
Ames (pop. 66,427) offers more amenities, schools, and services typical of a larger city, while Council Bluffs (pop. 62,230) may offer a quieter, more community-oriented lifestyle. Families on a budget may prefer Council Bluffs, where lower housing costs free up more income for childcare, education, and savings.