This Town Has Been Named the Poorest in Iowa

Oelwein, a small city in Fayette County, has recently been identified as the poorest town in Iowa, according to the latest demographic and economic data. This distinction is drawn from a combination of factors including household income, poverty rates, and other socioeconomic indicators.

Economic Challenges

Oelwein’s median household income stands at $49,821, which is significantly lower than the Iowa state median of approximately $70,571.

The city’s poverty rate is notably high: 17.1% of Oelwein residents live below the poverty line, a figure that is about 34% greater than the statewide poverty rate of 11.3%.

This means nearly one in six residents faces economic hardship, making Oelwein’s poverty rate among the highest for towns of its size in Iowa.

Demographic Snapshot

Population: As of 2024, Oelwein’s population is estimated at 5,788, reflecting a slow but steady decline over the past decade.
Age: The median age in Oelwein is 44 years, indicating an aging population.
Race and Ethnicity: The city is predominantly White (about 92%), with small percentages of residents identifying as Hispanic or Latino (2.8%), two or more races (5.8%), and other groups.
Education: Only 16.1% of adults in Oelwein have a bachelor’s degree or higher, which is below the state average.

Housing and Cost of Living

The median value of owner-occupied homes in Oelwein is $96,800, much lower than the state median of $181,600. The homeownership rate is high at 76.8%, but the low property values reflect the town’s broader economic struggles.

Historical Context

Oelwein has a rich history as a railroad town, but economic shifts and the decline of local industry have contributed to its current challenges. Population decline and limited job opportunities have further strained the community’s economic prospects.

Poverty in Context

Oelwein’s poverty rate is not only higher than the state average but also exceeds the rate for Fayette County as a whole, where 12.5% of residents live below the poverty line. This persistent economic hardship has positioned Oelwein as the poorest town in Iowa by several recent analyses.

Oelwein’s combination of low median income, high poverty rates, and declining population underscores the economic difficulties facing many small towns in Iowa. While the community retains a strong sense of identity and history, the data paints a clear picture of the challenges its residents continue to face.

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