The housing market varies from state to state, and between prioritizing location, calculating taxes, and paying utilities, it can be difficult to discern which cities truly have the most affordable homes.
Still, people try.
Mortgage lender site Homebuyer.com recently published a new report on the 10 cheapest states to buy a home by tallying median home prices, household income, and estimated monthly mortgage payments. By assessing the median home price and average income, the homebuying site was able to calculate the percentage of income paid to the mortgage.
Here are the cheapest states to buy a home, according to their research:
1. Iowa
Median home price: $147,800
Median household income: $79,500
Estimated monthly mortgage payment: $702.22
Percentage of income to mortgage payment: 10.60%.
2. Indiana
Median home price: $141,700
Median household income: $73,300
Estimated monthly mortgage payment: $673.23
Percentage of income to mortgage payment: 11.02%
3. Ohio
Median home price: $145,700
Median household income: $75,300
Estimated monthly mortgage payment: $692.24
Percentage of income to mortgage payment: 11.03%
4. Nebraska
Median home price: $155,800
Median household income: $79,400
Estimated monthly mortgage payment: $740.22
Percentage of income to mortgage payment: 11.19%
5. Kansas
Median home price: $151,900
Median household income: $77,400
Estimated monthly mortgage payment: $721.70
Percentage of income to mortgage payment: 11.19%
6. Mississippi
Median home price: $119,000
Median household income: $60,000
Estimated monthly mortgage payment: $565.38
Percentage of income to mortgage payment: 11.31%
7. West Virginia
Median home price: $119,600
Median household income: $60,300
Estimated monthly mortgage payment: $568.23
Percentage of income to mortgage payment: 11.31%
8. Oklahoma
Median home price: $136,800
Median household income: $67,000
Estimated monthly mortgage payment: $649.95
Percentage of income to mortgage payment: 11.64%
9. Michigan
Median home price: $154,900
Median household income: $75,300
Estimated monthly mortgage payment: $735.95
Percentage of income to mortgage payment: 11.73%
10. Arkansas
Median home price: $127,800=
Median household income: $60,700
Estimated monthly mortgage payment: $607.19
Percentage of income to mortgage payment: 12%
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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
