Oelwein, Iowa, stands out as the poorest town in the state based on recent economic analyses. This small city of about 5,900 residents grapples with low incomes and higher poverty amid broader Iowa trends.
Economic Snapshot
Oelwein has a median household income of $41,629, the lowest among Iowa towns analyzed, far below the state’s $70,571.
Its poverty rate hits 17.5%, double Iowa’s 11.1% average, affecting over 1,000 people. Home values average $97,000, roughly half the state median of $181,600.
Key Factors
Limited job opportunities drive the struggles, with manufacturing decline hitting Fayette County hard. Only 13.7% of adults hold bachelor’s degrees, compared to 30.3% statewide, curbing higher-wage roles.
Unemployment remains elevated, though the low cost of living offers some relief.
Comparisons
| Metric | Oelwein | Iowa Average | Centerville (Iowa #2) |
|---|---|---|---|
| Population | 5,934 | – | 5,393 |
| Median Income | $41,629 | $70,571 | $42,064 |
| Poverty Rate | 17.5% | 11.1% | 25.3% |
| Bachelor’s+ | 13.7% | 30.3% | Not specified |
Oelwein edges out Centerville as Iowa’s poorest per 2025 national rankings using 2022 Census data, prioritizing income over raw poverty. Keokuk ranks second statewide by some metrics.
Context and Outlook
Iowa’s overall poverty is low at 11.3%, but rural areas like Oelwein face deindustrialization. Community efforts focus on workforce training and small business growth, though recovery lags. Recent inflation has strained such towns nationwide.
SOURCES:
- https://spotlightonpoverty.org/states/iowa/
- https://khak.com/eastern-iowa-is-home-to-the-poorest-city-town-in-the-state/
