Palo city, Iowa Demographics & Population 2026
As of 2026, Palo city, Iowa has a total population of 1,173, the 258th largest city in Iowa, with a median household income of $103,646, which is 42% higher than the state average. The poverty rate is 3.3%.
Key Takeaways
- Household income is 42% above the state average — one of the wealthiest communities in Iowa.
- An exceptionally low poverty rate of 3.3% — among the lowest in Iowa.
- Near full employment with an unemployment rate of just 2.3%.
Palo city Quick Facts
How Palo city Compares
Median Household Income
Median Home Value
Economy & Housing
Household Income Distribution
Employment
Housing Overview
People & Demographics
Age Distribution
Race & Ethnicity
Diversity Index
A less diverse community where one racial or ethnic group represents a large majority.
State average: 30 | National average: 60
Education
Educational Attainment (Adults 25+)
Palo city Rankings in Iowa
Explore Iowa Rankings
Cities Similar to Palo city
These cities in the same state have comparable population and economic profiles.
| City | Population | Median Income | Home Value | Bachelor's+ | Poverty |
|---|---|---|---|---|---|
| University Heights city | 1,232 | $105,172 | $393,200 | 89.2% | 16.9% |
| Springville city | 1,210 | $96,250 | $175,900 | 28.7% | 9.3% |
| Fruitland city | 1,107 | $101,375 | $219,000 | 17.7% | 2.0% |
| Swisher city | 1,064 | $99,118 | $249,800 | 36.0% | 6.9% |
| Gilbert city | 1,300 | $112,250 | $267,200 | 45.5% | 5.0% |
Population Overview
Palo city is a small community located in Iowa. The total population is 1,173. It ranks as the 258th most populous out of 1,018 cities and towns in Iowa.
Age Demographics
The median age in Palo city is 32.7 years. This is 15% lower than the state median of 38.6 years. With 33.6% of the population under 18, Palo city has a notably young demographic profile, suggesting a family-oriented community.
Economy, Income & Housing
The median household income in Palo city is $103,646. This is 42% higher than the state median of $73,147. Compared to the national median of $78,538, household income here is 32% higher. The poverty rate stands at 3.3%. This is 70% lower than the state poverty rate of 11.0%. This exceptionally low poverty rate indicates strong economic prosperity across the community. The unemployment rate is 2.3%. This is 36% lower than the state rate of 3.6%. The median home value is $274,200. Housing costs are 40% higher than the state median of $195,900. With a home-value-to-income ratio of just 2.6x, Palo city is one of the most affordable housing markets in the area. 95.3% of occupied housing units are owner-occupied. This homeownership rate is 33% higher than the state average of 71.5%.
Race & Ethnicity
Palo city has a predominantly White (non-Hispanic) population, comprising 93.8% of all residents. Hispanic or Latino residents account for 1.3%. The Black or African American population (0.7%) is well below the state average of 3.8%. The Hispanic or Latino population (1.3%) is well below the state average of 7.0%. The Asian population (0.2%) is well below the state average of 2.4%.
Education
27.5% of residents aged 25 and older hold a bachelor's degree or higher. This is 11% lower than the state rate of 30.9%. Nationally, 35.0% of adults hold at least a bachelor's degree. The high school graduation rate (or equivalent) is 98.6%.
Data Sources & Methodology
All demographic data for Palo city, Iowa is sourced from the U.S. Census Bureau's American Community Survey (ACS) 5-Year Estimates (2019-2023). The ACS collects data from approximately 3.5 million households annually, providing reliable estimates for communities of all sizes. Comparisons are made against Iowa state averages and national averages calculated from the same dataset. Rankings reflect the city's position among all 1,018 Census-designated places in Iowa. For official data, visit data.census.gov.
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Frequently Asked Questions
What is the population of Palo city, Iowa?
Palo city, Iowa has a population of 1,173 according to the most recent U.S. Census ACS 5-Year Estimates.
What is the median household income in Palo city, IA?
The median household income in Palo city is $103,646, which is 32% higher the national median of $78,538.
What is the poverty rate in Palo city, IA?
The poverty rate in Palo city is 3.3%. This means approximately 38 residents live below the federal poverty line.
What is the racial makeup of Palo city, Iowa?
Palo city's population is 93.8% White, 0.7% Black, 1.3% Hispanic/Latino, and 0.2% Asian.
What is the median home value in Palo city, IA?
The median home value in Palo city is $274,200. The home-value-to-income ratio is 2.6x.
How educated is Palo city, Iowa?
27.5% of adults (25+) in Palo city hold a bachelor's degree or higher, and 5.7% hold a graduate or professional degree.