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Things that make me go Hmmmmm....Land Prices

What It Really Takes: Cost Breakdown for a Family of Four in Iowa in 2025


I asked ChatGPT to create a detailed look at what it takes financially for a family of four in Iowa to live a middle-class lifestyle while paying for a new house and 80 acres of land, maxing out retirement accounts, and accounting for taxes in 2025.

Here’s the scenario it gave me:
  • Land purchase: 80 acres at $6,000/acre ($480,000 total)
  • Land loan: 25% down, 15 years, 7.5% interest → $3,368/month
  • Home purchase: $400,000, 20% down, 30 years, 6.5% interest → $2,019/month
  • Maxing out 401(k) contributions: $3,833/month (for two earners)
  • Living expenses for a middle-class family of four: $5,500/month
  • Federal taxes (based on 2025 brackets): ~$2,537/month
  • Iowa flat state tax (3.8%): ~$631/month

Total monthly outflows come to about $17,888, totaling roughly $215,000/year.
I’d look at the land (80 ac) separate, it can be a whole different story . For example , does the 80 have crop land ?

Example 50 acres x $200/acre rent … suddenly the income of $10,000 of year offsets some of the expenses!

This is how I’ve bought, and I don’t shoot huge bucks like Skip, but I’ve shot some for the wall/man cave and have a nice future cash rent income stream at retirement!!
 
It looks like roughly 5% of Iowa households make over $230k/year and the average annual salary in Iowa is right about $50k. When you take the number of hunters who are in that top 5% of households you're talking about a very few number of people who can make that equation work.

I get the 'work harder' and 'all about priorities' but those are some pretty difficult numbers to reach for most Iowans. Someone who gets a $7 coffee per day for a month is "only" spending $210 per month. That's a drop in the bucket of the 17k/month on the numbers from earlier.

There are lots of people who sacrifice and work hard to get there. Absolutely. But there are also a lot of people who came into money or got a big break to make that first purchase feasible. I just listened to a podcast where a guy always had the dream to own ground but was in some tough waters financially the first few years after college. His Dad paid off his $35k (ish) truck loan after it got repossessed. If it wasn't for that, he probably wouldn't own any ground today but instead has a beautiful house on a good chunk of ground.
 
Last week I called about a sign that just was placed next to a property on a blacktop. Said 7 acres. Called the guy and should have saved us both the time and asked price up front. A building site would need a dozer in to clear trees. Wasn't fenced. It was a rectangular tract running along the hard top, all of the 7 acres were a brushy deep gulch. They were carving off the rough ground, keeping the row crop behind it. Asking price? $400K I laughed.
 
Everything skip listed is accurate, about working hard, sacrificing saving etc. The problem today is, Getting a standard job say of 50k in Iowa, the cost of living is stupid high currently, add that to current real estate prices and it's becoming very hard for the average person to save enough to buy anything.

Some of the issues today I see. Most listings you see are listed for absolute premium prices for properties that are far from premium properties. Personally I don't like properties without a financial return.Even if it's CRP income that's better than a big goose egg. And I'm seeing 0 return properties for premium prices, I don't care how big that deer is.
40 acres of creeks and trees isn't worth 400,000 dollars. See listing's like this all the time.
 
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  • Reason: Multiple
Show…
I want to help folks do it that want to do it and don’t see a path or need help. Love it. I got told “no way u can do it” so many times growing up poor- it fired me up. I heard this one 30 years ago …. “If you don’t grow up in a farm or inheritant one- no way the average guy can get into farming”. & I don’t disagree with that statement for most part 30 years ago or today. At both periods- insanely hard!!!!!! Now- just to own “40 acres” is a far easier game. Still very hard & I 10000% agree.,…. “I make $50k & have payments on xyz”. The only way I see a person like that getting ahead is…. Getting rid of all debt & drive paid off older vehicles. Living in lowest cost housing possible. Then- something else has to be added IF it’s gonna work “I got a roommate”. I got a raise or do extra work to make $15k more a year. Side hustle. Find wife that makes good $ ;). Cutting costs & making more $ …. It clearly boils down to that. & I totally understand that’s not doable for some folks. I get it. Maybe it genuinely is something that needs kicked down road 5-10 years. Maybe a guy starts the plan now & 10 years later things are finally humming along. Ya- dude has “3 little kids & wife that doesn’t work” or whatever - ya, I get it- not possible or not the time to buy land.
I’ve seen guys that are 60+ buy their first farms. Small parcels. Great!!!!! Never too late. I know a lot of people “owning land isn’t right thing for me” & that’s all good too of course!!!!
If you are 20-30 years old for example…. A 5-10 year plan on “how can I save enough to have down payment on $150k piece of land” would be a reasonable start for most folks. Some could do it in 2, some maybe it takes 15 years. It has to be put in motion & decided though “in 10 years I will have ___ saved and I will buy land”. Life happens & sometimes doesn’t work out. But that’s where I’d start…. “I make this… _____. I wanna save this amount in this amount of time______”. “This is my plan to get there_____”. It’s hard/discipline but at same time - it’s actually fairly simple. :). BOTTOM LINE: best wishes to those that want it and u got a whole lotta dudes here that are routing for u & have ideas on how to do it. Not everyone will or should own land. & it’s not the most important thing in life. Those that do- here to help!
 
Here’s few ideas that did help me in beginning….. ask if folks will do land contract. Lotta times u could get in with infinite flexibility & ideas & probably less $ down.
If find older folks where no kids- sometimes they give discount if u buy and they stay there for their remaining days. Actually fairly common.
Go to every auction u see (will almost all be online nowadays). Bid on everyone & just wait “for that one” that’s a steal. Lemme put it this way…. If a guy bid on “50 farms could buy” over a 5 year period for example ….. 2-3 of these will be steals. Killer deals. Maybe more. It won’t be 0!!! Half of em pry be “market”, 25% go “too high”. Maybe 20% go too low & 5% go WAY TOO LOW. Worth doing it.
Another last thing- dont limit yourself to location on first farm. Like- id but anywhere it’s a deal & great farm. Do the travel to the farm & if you get sick of it- sell, make $ & roll it closer.
 
It looks like roughly 5% of Iowa households make over $230k/year and the average annual salary in Iowa is right about $50k. When you take the number of hunters who are in that top 5% of households you're talking about a very few number of people who can make that equation work.

I get the 'work harder' and 'all about priorities' but those are some pretty difficult numbers to reach for most Iowans. Someone who gets a $7 coffee per day for a month is "only" spending $210 per month. That's a drop in the bucket of the 17k/month on the numbers from earlier.

There are lots of people who sacrifice and work hard to get there. Absolutely. But there are also a lot of people who came into money or got a big break to make that first purchase feasible. I just listened to a podcast where a guy always had the dream to own ground but was in some tough waters financially the first few years after college. His Dad paid off his $35k (ish) truck loan after it got repossessed. If it wasn't for that, he probably wouldn't own any ground today but instead has a beautiful house on a good chunk of ground.
Obtaining a top 5%+ household income certainly doesn’t happen overnight for most people, but it’s not an unreasonable goal for someone with average intelligence and a strong drive to prioritize it. That drive — not just intelligence — is by far the most important factor. I believe that just about any able-bodied person with a 10- to 15-year runway can make it happen if it’s truly a top priority. That said, it’s also perfectly fine if it’s not a priority. There are a lot more important things in life than chasing a high income.

In my example, I had that household maxing out their retirement accounts, which I think reflects a balanced approach most folks prefer. But for some people, funneling as much cash as possible into buying land might be their priority.

Finding a life partner who’s on the same page financially and shares that vision can’t be underrated. Whether they’re contributing directly to the household income or supporting the work it takes to achieve that shared dream, a good partner can make all the difference. For two educated or skilled professionals in high-demand fields, a top 5% household income is definitely within reach over time.

According to Census.gov, the average 2023 household income was around $73K, but if you focus on dual-income households where both partners have a college degree or skilled trade, work in a metro area, and are in their late 30s or early 40s, I’d bet their average income jumps closer to $150K. If they’ve spent 10–15 years working in fields that have a decent barrier to entry and are in demand, I’d say hitting that $200K+ household income is very achievable. Granted, there are some fields where it's tougher to achieve this (teaching, social work, etc.). However, folks in those professions are driven by something that is far more important than money.

In today's market, I don’t think most people should expect to start with 80+ acres right out of the gate, but that’s exactly why I think it’s so important to be thinking about ways to grow income and maximize human capital — especially for those who are young. Time and consistent effort can turn even modest beginnings into something substantial, whether that’s buying a few acres, owning a home, or building a nest egg. Ultimately, it’s about finding a balance that aligns with one's values and one's dreams, and not getting discouraged by the gap between where one is today and where one would like to be.
 
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