May 31 (Bloomberg) -- Matt Lavin, an Iowa City graduate student, says nothing he has heard so far -- not the reports of $400 haircuts, the $44,000 fee for a speech on poverty, the $500,000 hedge-fund salary -- has shaken his support for Democratic presidential candidate John Edwards.

``I like where he is on the issues,'' Lavin, 26, said in an interview. ``The fact that he has enough money to be able to afford certain things isn't material to his politics.''

In recent months, Edwards, 53, has provided easy fodder for political critics and late-night television comics, who have delighted in contrasting his self-portrayal as the champion of the poor and middle class with reports about his lifestyle. Still, he is running at the head of the pack in Iowa, which will host the first presidential caucus early next year.

His standing is a testament to his organization in the state, his skills on the stump and two dozen visits since the 2004 election, Iowa political observers say. ``A lesser politician would really be down,'' said Gordon Fischer, a Des Moines attorney and former Iowa State Democratic Party chairman who isn't affiliated with any campaign. ``I think he's right now the person to beat.''

In interviews, Iowa Democrats such as Lavin say they are drawn to Edwards by his staunch opposition to the Iraq war and his emphasis on policies such as universal health care and expanding union membership.

``He has some pretty good ideas,'' said Greg Verdoorn, 54, who works at an Iowa City supermarket. ``He seems like the most viable candidate right now.''

North Carolina Mansion

For Edwards, who amassed a multimillion-dollar fortune as a trial lawyer, trouble erupted in March when it was reported he was building a 28,000 square-foot house on 102 acres in North Carolina. Then, last month, he had to reimburse his campaign for two $400 haircuts from a Beverly Hills, California, hair- stylist.

Jay Leno, the host of NBC television's ``Tonight Show,'' told viewers that Edwards had changed his campaign slogan to ``shampoo, rinse, repeat.'' The salon treatments also provided the biggest laugh line of the May 15 debate between Republican presidential candidates, when Arkansas Governor Mike Huckabee said a profligate Congress was spending money like ``John Edwards in a beauty shop.''

When Edwards released his financial disclosure forms this month, he reported $497,512 in salary while working for a New York hedge fund. And he received a $44,000 fee for a speech on poverty at the University of California at Davis.

`Double Standard'

``There is, to some extent, an unfair double standard because people aren't talking about the other candidates' haircuts or houses,'' Fischer said. ``But he has made poverty a central issue of his campaign.''

For now, there's little visible impact on his standing. A survey conducted May 12-16 by the Des Moines Register showed Edwards, a former senator from North Carolina, leading the Democratic pack with 29 percent support, a statistically significant edge over Illinois Senator Barack Obama, 45, who received 23 percent.

New York Senator Hillary Clinton, 59, was backed by 21 percent in the survey of 400 likely Democratic caucus-goers, which had a margin of error of 4.9 percentage points.

Edwards has ``proved surprisingly resilient'' in Iowa, said Jeff Link, a Democratic campaign consultant in Des Moines.

Insulated

Jennifer O'Malley, the Edwards campaign's Iowa state director, attributed his strong showing to regular visits to the state and voters' familiarity with him as a two-time presidential candidate, which have helped insulate him from stories circulated in the national media.

``The difference here is that people know Senator Edwards pretty well,'' she said. ``Certainly, he's been here enough to build a relationship with these folks.''

Edwards' first stop after kicking off his presidential campaign was Iowa, his 16th visit to the state since the 2004 presidential election, when he ran for the Democratic nomination and later as Senator John Kerry's vice presidential running mate. Since then, has been back eight times, most recently visiting 13 counties in the eastern part of the state over the Memorial Day Weekend. He is scheduled to return this weekend for an Iowa State Democratic Party fund-raising dinner.

`Concerted Effort'

``He's made a concerted effort to stay in touch with his Iowa supporters,'' Link said.

Not all Democrats are ready to ignore the recent headlines. ``He certainly comes across less favorably when he espouses the middle class and then lives in a million-dollar home and gets hundred-dollar hair cuts,'' said Nancy Davis, a Des Moines retiree, who now leans toward Clinton over Edwards.

Still, in interviews with a dozen Democrats in Des Moines and Iowa City this week, most liked what they had heard from Edwards.

Jack Pulliam, a 48-year-old construction worker from Des Moines, saw Edwards at an event last year and said news about mansions and hedge-fund salaries haven't soured him on the candidate.

``If I had 400 bucks to get a haircut, I'd get one too,'' Pulliam said.

To contact the reporter on this story: Nicholas Johnston in Iowa City, Iowa at njohnston3@bloomberg.net

Last Updated: May 31, 2007 00:17 EDT