Entry-Level Real Estate Agent Salary in Ottumwa, IA: $31,255 (2026)
Quick Answer:New real estate agents entering the Ottumwa, IA job market in 2026 can expect a starting salary around $31,255 (BLS 10th-percentile benchmark for SOC 41-9022, projected from 2025 OEWS data). Stripping out Ottumwa's local price level (BEA RPP 90.4 — 10% below national), a first-year paycheck buys what $34,574 would in average-cost America. Most reach the city median ($45,102) within a few years of clinical practice.
Based on BLS state-level estimates · View source
Prospective real estate agents in Ottumwa, Iowa, can expect a starting salary around $31,255 in 2026, which positions them significantly below the city's median annual salary of $45,102. This salary reflects the challenges that new graduates face as they embark on their careers, with a clear gap to bridge in the initial years. Early in their careers, entry-level agents can realistically anticipate gradual growth, moving to a salary of $35,862 by year three, as they hone their skills and grow their professional networks. Given Ottumwa's modest cost of living, coupled with its projected growth rate of 1.50% annually, the local market presents both opportunities and challenges for newcomers looking to establish themselves in the real estate field.
About the Ottumwa Market
Salary estimated from Iowa average ($58,000) adjusted for local cost of living.
Career Earnings Timeline in Ottumwa
New Graduate
Early Career
Mid Career
Experienced
Salary progression estimated from BLS percentile data. Actual progression varies by employer, certifications, and specialization.
2026 Salary Percentile Distribution in Ottumwa
Entry-level real estate agents in Ottumwa, IA typically start between $31,255 and $35,862 per year (2026 est.). The full salary range spans $38,652 from the 10th to 90th percentile, with the local median at $45,102 — 15.89% below the national median.
Return on Investment
The average real estate program cost in Iowa of $1,500 represents just 4.80% of the starting real estate agent pay ($31,255/year) in Ottumwa. Most graduates begin earning back their investment from day one, though actual ROI varies based on living expenses, loan interest, and the 2-year opportunity cost of schooling.
Cost estimates include state-mandated pre-licensing courses, exam fees, background checks, initial license, and MLS/NAR dues. Agents typically pay for business expenses themselves. Brokers require additional experience and post-licensing education.
REA Salary Negotiation Tips for New Graduates in Ottumwa
- 1Research the Ottumwa market: entry-level real estate agent pay ranges from $31,255 to $35,862, so aim for at least the 25th percentile if you have strong credentials.
- 2Highlight any additional certifications or specialty training within the real estate field — employers in IA often pay a premium for expanded scope of work.
- 3Evaluate the full compensation package — in Ottumwa, benefits like health insurance, continuing-education allowances, and schedule flexibility can add 20-30% to your effective compensation.
- 4Consider starting with a larger hospital system or multi-site employer in Ottumwa for competitive entry-level pay and structured mentorship, then move to a smaller employer once you have 2-3 years of experience.
- 5Ottumwa's below-average cost of living means your starting salary goes further here compared to many larger metro areas.
Real Estate Agent Compensation Range
The real estate agent wage spread in Ottumwa is $38,652 ( 123.67%) between entry-level and top earners. Starting at $31,255, experienced hygienists can earn up to $69,907.
Represents the current salary spread across experience levels, not projected career growth rate.
2019 BLS Actual
$23,284
2025 BLS Actual
$30,793
2026 Current Est.
$31,255
2019–2027 Growth
+36.2%
Salary Trajectory for Real Estate Agents in Ottumwa (2019–2027)
2019–2025: actual BLS OEWS data for this metro area. 2026+: CAGR 1.50% projection.
| Year | Annual Salary | Status |
|---|---|---|
| 2019 | $23,284 | Actual |
| 2020 | $23,443 | Actual |
| 2021 | $26,403 | Actual |
| 2022 | $27,207 | Actual |
| 2023 | $29,336 | Actual |
| 2024 | $30,850 | Actual |
| 2025 | $30,793 | Actual |
| 2026(current) | $31,255 | Estimated |
| 2027 | $31,724 | Projected |
Entry-level real estate agent compensation (10th percentile) in Ottumwa, IA grew 32.2% over 7 years based on actual BLS metropolitan area surveys, rising from $23,284 in 2019 to $30,793 in 2025. By 2027, starting salaries are projected to reach $31,724. New graduates entering the Ottumwa job market can expect continued year-over-year gains.
Note: Historical values (2019–2025) are actual BLS OEWS figures for the Ottumwa metropolitan area, sourced from annual Occupational Employment and Wage Statistics surveys. 2026–2026 figures are current estimates, and 2027 values are projections, calculated using a 1.50% CAGR derived from 7-year BLS historical data. Actual salaries may vary based on employer, experience, certifications, and local market conditions.
Starting Your real estate Career in Ottumwa
Regarding hiring trends in Ottumwa, national franchise brokerages like Keller Williams and RE/MAX often lead the way in recruiting new agents. These firms typically offer structured training and mentorship programs, allowing fresh graduates to start their careers with added support. Agents usually work as independent contractors on commission splits, and with the post-2024 shifts in commission structure, understanding the dynamics of income distribution is crucial. Securing a state real estate sales license can enhance a new grad's earning potential, while designations like NAR REALTOR® can further differentiate them in the job market. It’s essential for early-career agents to build relationships and consider team-based operations, as collaboration can lead to higher earning potential compared to the solo agent model. Given the competitive nature of the industry, particularly the fact that the top 20% earn the majority of commissions, a strategic approach during the first few years can significantly impact long-term success in the Ottumwa real estate market.
More salary data for Ottumwa, IA:
Frequently Asked Questions
What is the starting salary for real estate agents in Ottumwa in 2026?
How fast do real estate agent salaries grow in Ottumwa?
Is real estate school worth it in Ottumwa?
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How do I become a real estate agent in Iowa?
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Written by Maria Gonzalez, REALTOR®
Career Analyst
Maria has 10 years of experience as a real estate agent. She specializes in residential properties. She works with a large brokerage in Texas.
Methodology & Data Source
Entry-level salary figures on this page are 2026 projections based on the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) survey, May 2026 release. The 10th percentile (entry-level) is used as the starting salary benchmark for new real estate graduates. A 1.50% compound annual growth rate (CAGR), derived from 6-year national BLS wage trends, was applied to project current 2026 entry-level compensation in Ottumwa. Program costs are averages and actual tuition varies by institution. ROI calculations are simplified estimates.
Data Sources & Methodology
Salary data for Ottumwa is estimated from official BLS state-level occupational wage data (2025), adjusted for regional cost-of-living differences using BEA RPP (Regional Price Parities).
2026 figures are projected from 2025 BLS data using a compound annual growth rate (CAGR) of 1.50%, derived from historical BLS wage trends for real estate agents (SOC 41-9022).
Compiled and verified by Maria Gonzalez, REALTOR®, a licensed real estate agent with 10+ years of clinical experience. · View source data at BLS.gov