The True Cost of Living in Davenport, IA: 2026 Financial Analysis

The official Cost of Living Index for Davenport sits at 88.8, roughly 11.2% cheaper than the national average. On paper, that looks like a bargain. However, that index is an average that smooths over the jagged edges of actual monthly expenses. For a single income earner, the baseline to achieve a standard "comfortable" lifestyle—which includes saving for retirement, carrying decent insurance, and not panicking over a $500 emergency—is roughly $38,277 net. That figure is the floor, not the ceiling. It assumes you are renting, driving a paid-off vehicle, and avoiding the debt traps that sink budgets in the Quad Cities. If you are looking for a cheap place to live, Davenport is a contender. If you are looking for a place where your money buys genuine financial breathing room, you need to look deeper than the index.

The Big Items

Housing: The Rent vs. Buy Trap

Housing is the anchor of your budget, and in Davenport, the anchor is heavy but manageable. The average rent for a one-bedroom unit is $773, while a two-bedroom runs $953. These numbers are significantly lower than the national medians, providing immediate relief from "sticker shock." However, the rental market here has a hidden volatility: the proximity to Illinois borders means utility costs (particularly heating in winter) can swing wildly based on usage, and older housing stock means maintenance delays are common. Renting is the safer play for short-term stability, but it is not a wealth-building vehicle.

Buying a home presents a different set of headaches. While specific median home price data is currently omitted, the local market is characterized by high property taxes—often the silent killer of mortgage affordability. In Scott County, you aren't just paying the mortgage; you are funding the local government. A home purchase here is less about the "sticker price" and more about the tax bite. The market isn't "hot" in the sense of rapid appreciation, meaning you buy for stability, not investment. If you plan to stay less than five years, buying is likely a money-loser once you factor in closing costs and the illiquidity of the asset. You are locking your capital into a market with stagnant growth, trading potential equity for the "bang for your buck" of square footage.

Taxes: The Invisible Deduction

Taxes in Davenport are the primary reason the cost of living index remains low; the government takes a larger cut upfront, suppressing disposable income and, consequently, prices. Iowa has a progressive income tax structure, but for a single earner making around $60,000, you are looking at a marginal rate around 3.9%. While that sounds low, it disappears into the paycheck before you see it.

The real financial bloodletting happens at the county and municipal level. Property taxes in the Quad Cities area are notoriously high relative to home values. You could easily pay 1.8% to 2.5% of a home's value annually in property taxes. For a $250,000 home, that is $4,500 to $6,250 per year—money that builds zero equity. This high tax burden is the primary driver of the lower home prices; the market adjusts the sticker price down to compensate for the ongoing annual bleed. You are effectively paying for the "privilege" of owning land in a municipality with high public spending needs.

Groceries & Gas: The Daily Grind

Grocery costs in Davenport are roughly 5% to 8% lower than the national average. A gallon of milk might run you $3.40, and a dozen eggs around $2.80. However, the savings are negated if you rely on specialty items or organic produce, where the selection is thinner and prices are marked up to cover the distributor's shipping costs to a mid-sized market.

Gasoline is where Davenport offers a distinct advantage. Prices typically hover 10% to 15% below the national average due to the proximity of refineries and the ethanol industry in Iowa. You can expect to pay roughly $2.85 per gallon for regular unleaded. This is a significant cost saver for commuters, as the area is car-dependent. Public transit exists but is inefficient for cross-town commutes. If you drive a gas-guzzler, the low fuel prices are a lifeline; if you drive an EV, you pay a different premium—electricity rates in Davenport are roughly 13.4 cents/kWh, which is reasonable but rising.

Hidden 'Gotcha' Costs

Davenport will nickel and dime you in ways the index doesn't capture. First, car insurance rates in Iowa are generally low, but if you live in specific zip codes with higher accident rates, you will see a spike. Second, flood insurance is a non-negotiable expense for anyone near the Mississippi or Rock Rivers. This is not optional; if you have a mortgage in a flood zone, you will pay $800 to $1,500 annually for coverage that feels like a scam until the levees break.

Third, while HOA fees are less prevalent than in major metros, they exist in condo developments and can range from $200 to $400 monthly. These fees rarely cover much beyond snow removal and liability insurance. Finally, there is the "convenience tax." Davenport has few toll roads, but parking in downtown Davenport or across the bridge in Moline/Easton can add up. Monthly downtown parking permits can run $50 to $80. It’s death by a thousand cuts: a $3 fee here, a $25 permit there.

Lifestyle Inflation

The cost of "fun" in Davenport is moderate, but it adds up fast if you aren't tracking it. A mid-range bottle of wine at a restaurant is marked up roughly 300% over retail. A night out for dinner and two drinks for a couple can easily hit $90 to $120 including tip.

Here is the concrete breakdown of discretionary spending:

• Gym Membership: $35 to $60 per month (Planet Fitness vs. a local boutique gym).
• Craft Beer: $7.00 per pint at a local brewery.
• Coffee: $4.50 for a standard latte.
• Movie Ticket: $12.00 to $14.00.

While these seem standard, the lack of "big city" entertainment options often leads to online spending. The boredom tax is real; people spend more on Amazon Prime and streaming services because the local nightlife is limited. You save money by staying in, which is the only way to beat the lifestyle inflation trap here.

Salary Scenarios

To understand what these costs mean in practice, we must look at three distinct income scenarios. The "Single Income" column represents the earner, while "Family Income" assumes a dual-income household (two earners) to maintain the same lifestyle tier.