Oelwein, located in Fayette County in eastern Iowa, has been identified as the poorest town in Iowa in 2025. Based on recent data analyzed by 24/7 Wall St., Oelwein ranks last out of 260 towns in the state by median household income. This article explores the economic profile of Oelwein and the challenges facing its residents.
Economic Snapshot of Oelwein
Oelwein’s population stands at approximately 5,934 residents, with a median household income of $41,629. This figure is significantly lower than Iowa’s statewide median income, which hovers around $70,571. The low median income underscores the financial hardships experienced by many families in Oelwein.
Poverty Rate and Education Levels
The town has a poverty rate of 17.5%, meaning nearly one in six residents lives below the poverty line. In addition, only 13.7% of adults in Oelwein have attained a bachelor’s degree or higher, highlighting limited access to higher education opportunities which can exacerbate economic difficulties.
Housing Market and Cost of Living
The median home value in Oelwein is estimated at $97,000, far below the Iowa median of $181,600. Despite economic struggles, the cost of living is relatively low in Oelwein, allowing residents to stretch their incomes more than in many other parts of the state.
Similar Economic Challenges in Other Iowa Towns
Other Iowa towns facing severe economic hardship include Centerville and Keokuk. Centerville has the highest poverty rate in Iowa at 25.3% and a median income of $42,064. Keokuk’s poverty rate is 19.3%, with a median income of $47,571. While these towns share challenges, Oelwein’s median income is the lowest, placing it at the bottom economically.
Broader Rural Issues Impacting Oelwein
Oelwein’s economic situation reflects broader issues facing many rural communities in Iowa and across the United States. Declining industries, limited job opportunities, and reduced access to healthcare and education contribute to persistent poverty and economic stagnation.
Economic Outlook for Oelwein
Oelwein’s status as the poorest town in Iowa highlights ongoing economic struggles in smaller rural communities. While the low cost of living provides some relief, efforts to improve education, expand job prospects, and revitalize local industries are essential to helping residents achieve better economic security in the future.
Sources
[1] https://khak.com/eastern-iowa-is-home-to-the-poorest-city-town-in-the-state/
[2] https://247wallst.com/income/2025/01/17/the-poorest-town-in-every-state-in-america/
[3] https://www.iowadatacenter.org/index.php/data-by-source/american-community-survey/poverty-rates-iowa-counties
[4] https://www.roadsnacks.net/poorest-places-in-iowa/
[5] https://www.unitedstateszipcodes.org/rankings/zips-in-ia/poverty_rate/
