ALICE: Asset Limited, Income Constrained, Employed, is a measure developed by United for ALICE, to give a more accurate picture of financial hardship. Using Federal Poverty Level (FPL) as a measure often considered outdated and does not consider the variation in cost of living across locations. ALICE is a way to discuss the large population of hardworking Iowa residents who work at low-paying jobs, have little or no savings, and are one emergency away from falling into poverty. The State of ALICE in Iowa Report is the most comprehensive depiction of financial needs in the state to date, using data from a variety of sources, including the US Census. Data is available on the state, county, and municipal level. 

Between ALICE households and those living in poverty, an estimated 37% of households in Iowa were below the ALICE Threshold in 2023. Households below the Threshold are forced to make impossible choices — like deciding whether to pay for utilities or a car repair, whether to buy food or fill a prescription.

ALICE households include people of all genders, ages, and races/ethnicities, across all household types. Yet, in Iowa in 2023 and over time, rates of financial hardship have differed substantially between groups, a result of multiple factors including systemic racism, ageism, gender discrimination, and geographic barriers that limit many families’ access to resources and opportunities for financial stability (United for ALICE).

In Central Iowa (Polk, Dallas, and Warren Counties) 90% of married households with children are above the ALICE threshold, while 54% of single-male-headed households and only 27% of single-female-headed households are above the ALICE threshold. In addition to gender-based disparities, racial disparities also exist in Central Iowa. In 2023, 26% of Asian households, 58% of African American/Black Households, 41% Hispanic households, 44% of American Indian/Alaska Native households, and 31% of White households fall below the ALICE threshold.

Workers below the ALICE Threshold increasingly bear the brunt of economic change and uncertainty as the workforce shifts to incorporate new technology and automation and as employers increase reliance on non-standard work arrangements — like hourly paid work, part-time employment, and gig work. These arrangements make it easier to reduce work hours or cut employment altogether when the economy ebbs (which happened to a large degree during the COVID-19 pandemic) and expand them when demand increases (which happens seasonally for a range of industries such as hospitality, recreation, and retail sales).

A key contributor to the number of ALICE households in Iowa is the fundamental mismatch between the cost of living and what jobs pay (United for ALICE).

In Iowa the top 5 hourly wage occupations with the highest percentage of workers living below the ALICE threshold are:

To capture the reality of household costs across Iowa, United For ALICE provides household budgets that are tailored by location and household type.

The Household Survival Budget reflects the minimum cost to live and work in today’s economy and includes housing, child care, food, transportation, health care, and technology, plus taxes and a 10% miscellaneous category. This budget is the basis for determining whether households are above or below the ALICE Threshold by county (United for ALICE).

In Central Iowa (Polk, Dallas, and Warren Counties) housing costs, based on Fair Market Rent, for a family of four (two adults and two children) is $1,201 per month. All other non-housing related costs equate to $5,937 per month for the same household of four with two children in child care. Annually this brings a Central Iowa household survival budget to $85,656, requiring an hourly wage of $42.83.