Buying a home has always been a cornerstone of the American dream, but let’s face it; housing prices aren’t what they used to be. In 2025, many families, first-time buyers, and even retirees are priced out of the traditional housing markets. Rising interest rates, inflation, and high demand have driven home prices to levels that can feel overwhelming.
But here’s the good news: affordable housing still exists! For reasons like being tired of renting, wanting to downsize, or simply looking for a fresh start in a more budget-friendly city, there are options out there. The key lies in understanding what makes housing markets more affordable and finding areas that offer the perfect balance between cost and quality of life.
Several factors contribute to the price of a home, including the local job market, population growth, availability of housing inventory, and even state-specific policies like tax incentives. Understanding these factors can help you navigate today’s housing market more strategically.
In this guide, we’re here to make your search easier and have put together a detailed list of the 15 cheapest places to buy a house in America in 2025. Let’s get started!
Cheapest Places to Buy a House in America in 2025: A Comparison Table of Median Home Prices vs. Income
| State | Median Home Price | Median Household Income | Estimated Monthly Mortgage Payment | Income-to-Mortgage Ratio |
| Iowa | $147,800 | $79,500 | $906 | 10.60% |
| Indiana | $141,700 | $73,300 | $869 | 11.02% |
| Ohio | $145,700 | $75,300 | $893 | 11.03% |
| Nebraska | $155,800 | $79,400 | $955 | 11.19% |
| Kansas | $151,900 | $77,400 | $931 | 11.19% |
| Mississippi | $119,000 | $60,000 | $730 | 11.31% |
| West Virginia | $119,600 | $60,300 | $733 | 11.31% |
| Oklahoma | $136,800 | $67,000 | $839 | 11.64% |
| Michigan | $154,900 | $75,300 | $950 | 11.73% |
| Arkansas | $127,800 | $60,700 | $784 | 12.00% |
| Alabama | $142,700 | $66,700 | $875 | 12.20% |
| North Dakota | $193,900 | $90,100 | $1,189 | 12.27% |
| Kentucky | $141,000 | $65,100 | $864 | 12.35% |
| Missouri | $157,200 | $72,300 | $964 | 12.40% |
| South Dakota | $167,100 | $75,500 | $1,025 | 12.62% |
1. Iowa
If affordability and quality of life top your checklist for buying a home, Iowa should be on your radar. With a median house price of just $147,800, Iowa offers some of the most budget-friendly housing options in the country.
Coupled with a median household income of $79,500, the state boasts an impressive income-to-mortgage ratio of only 10.60%, making homeownership here not only possible but sustainable. For those wary of being house-poor, Iowa offers a financial cushion that many other states simply can’t match.
Beyond affordability, Iowa shines when it comes to overall living standards. Known for its strong sense of community and low crime rates, the state offers a safe and welcoming environment for families and retirees alike.
Cities like Des Moines, Cedar Rapids, and Davenport combine a small-town vibe with urban conveniences, including excellent schools, reliable healthcare, and a growing job market. Iowa’s economy is bolstered by agriculture, manufacturing, and education, creating stable employment opportunities for residents.
2. Indiana
Indiana is an excellent choice for anyone seeking affordable homeownership paired with a comfortable lifestyle. With a median house price of $141,700, it’s one of the most wallet-friendly states in America. The median household income of $73,300 and an income-to-mortgage ratio of 11.02% make buying a home in Indiana not just affordable but also financially manageable.
With an estimated monthly mortgage payment of $869, Indiana allows homeowners to allocate their budgets wisely, leaving room for other priorities like savings or leisure activities. What makes Indiana truly appealing is its blend of affordability and livability. The state is home to vibrant cities like Indianapolis, Fort Wayne, and Bloomington, each offering unique perks.
Indianapolis, for example, is known for its bustling downtown, thriving job market, and cultural attractions like the Indianapolis Museum of Art and the iconic Indianapolis Motor Speedway. Meanwhile, smaller towns like Carmel and Fishers are often ranked among the best places to live in the U.S., thanks to their excellent schools and family-friendly neighborhoods.
3. Ohio
Ohio is a fantastic option for anyone looking to buy a home without breaking the bank. With a median house price of $145,700, it’s one of the most affordable housing markets in the U.S. The median household income of $75,300 and an income-to-mortgage ratio of 11.03% indicate that most residents can comfortably manage their housing expenses.
An estimated monthly mortgage payment of $893 makes Ohio an attractive choice for first-time homebuyers and those looking to maximize their financial flexibility. Beyond affordability, Ohio offers a well-rounded lifestyle with plenty of amenities and opportunities.
For families, Ohio is hard to beat with its excellent schools, safe neighborhoods, and abundant recreational spaces. The cost of living in the state is well below the national average, meaning you can enjoy quality healthcare, affordable groceries, and utilities while still having room in your budget for leisure activities.
4. Nebraska
Nebraska is a secret gem for those looking for affordable housing and a strong sense of community and quality of life. With a median home price of $155,800, it’s an attainable market for first-time buyers and families. The median household income of $79,400 and an income-to-mortgage ratio of 11.19% makes owning a home here a realistic and smart financial decision.
With an estimated monthly mortgage payment of $955 Nebraska hits the sweet spot between affordability and livability. What sets Nebraska apart is its quirky charm and practicality. The state is known for its agricultural economy but it also has job opportunities in healthcare, education, and technology, especially in cities like Omaha and Lincoln.
Omaha the state’s largest city has a strong job market, cultural attractions like the Henry Doorly Zoo, and a great food scene. Lincoln home to the University of Nebraska has a college town vibe with good schools and a strong sense of community.
5. Kansas
Kansas is another ideal choice for those who want affordable homeownership without sacrificing comfort or convenience. With a median house price of $151,900, Kansas offers some of the most budget-friendly real estate in the country. The median household income of $77,400 and an income-to-mortgage ratio of 11.19% mean that residents can easily manage their housing costs, with an estimated monthly mortgage payment of $931 a number that allows for financial flexibility and peace of mind.
What makes Kansas stand out is its balance of affordability and quality of life. The state’s job market is diverse, with strong industries in agriculture, aerospace, manufacturing, and healthcare. Cities like Wichita and Topeka offer a blend of small-town charm and urban amenities, with great schools, family-friendly neighborhoods, and a lower-than-average cost of living.
Beyond affordability, Kansas offers a slower pace of life, making it an ideal choice for families, retirees, or anyone looking to escape the hustle and bustle of big cities. The cost of everyday essentials like groceries, utilities, and healthcare is much lower than the national average, which means more money in your pocket for the things that matter most.
6. Mississippi
Mississippi offers incredible affordability for those looking to buy a home without breaking the bank. With a median house price of just $119,000, it’s the sixth most affordable state to buy property in 2025. The median household income of $60,000 and an income-to-mortgage ratio of 11.31% mean that homeowners can comfortably manage their monthly payments, which come to an estimated $730.
Beyond affordability, Mississippi presents a laid-back lifestyle with a unique southern charm. The state’s low cost of living extends well beyond just housing. Whether it’s groceries, utilities, or healthcare, Mississippi offers competitive pricing compared to the national average.
The state’s strong agricultural base and growing sectors in healthcare and education provide job opportunities, particularly in cities like Jackson, Gulfport, and Biloxi. Jackson, the capital, has a thriving cultural scene, including museums and music festivals, while the coastal areas like Biloxi offer beautiful beaches and a slower-paced lifestyle perfect for retirees or those looking to escape crowded cities.
7. West Virginia
West Virginia offers a rare combination of affordable housing and natural beauty, making it a great place to live for those looking to stretch their budgets. With a median house price of just $119,000, it ranks as one of the most affordable places to buy a home. The median household income of $60,300 and an income-to-mortgage ratio of 11.31% make homeownership accessible, with an estimated monthly mortgage payment of $733, allowing homeowners to comfortably manage their finances.
What sets West Virginia apart is its stunning landscape, with rolling hills, forests, and mountains offering breathtaking views right outside your doorstep. While the state has a lower cost of living, it still offers a welcoming, tight-knit community feel in towns like Charleston and Morgantown. The state’s economy has been diversifying, with growth in sectors like healthcare, education, and energy, providing steady job opportunities.
West Virginia’s charm lies in its peaceful, slower-paced lifestyle, making it a great option for families, retirees, or anyone seeking a more tranquil way of living.
8. Oklahoma
Oklahoma stands out as one of the most affordable states to buy a home, with a median house price of $136,800. Coupled with a median household income of $67,000, it’s clear that the state provides plenty of opportunities for comfortable living without the high costs typically seen in other areas. The estimated monthly mortgage payment of $839 and an income-to-mortgage ratio of 11.64% make it easy to see why Oklahoma is such an appealing choice for potential homeowners.
Beyond affordability, Oklahoma offers a rich cultural and outdoor lifestyle. Whether you’re exploring the scenic beauty of the Ozark Mountains, enjoying the vibrant arts scene in Oklahoma City, or benefiting from the state’s strong economy in industries like energy, healthcare, and agriculture, Oklahoma truly has something for everyone.
With a mix of urban excitement and rural charm, Oklahoma offers a welcoming community and plenty of opportunities for those looking to settle down.
9. Michigan
Michigan offers a fantastic opportunity for homebuyers seeking a balanced mix of affordability and quality of life. With a median house price of $154,900, it provides a competitive housing market for those looking to invest without the hefty price tag seen in other regions. The median household income of $75,300 ensures that residents can comfortably manage their estimated monthly mortgage payment of $950, with an income-to-mortgage ratio of 11.73% leaving room for other financial goals.
Beyond its affordable housing, Michigan is rich in natural beauty and cultural attractions. From the stunning Great Lakes to its bustling cities like Detroit and Grand Rapids, the state has a lot to offer. Detroit, while still undergoing revitalization, offers a unique blend of history, arts, and job opportunities, particularly in industries like automotive and tech.
Grand Rapids is a hub for healthcare, manufacturing, and the arts, making it an attractive place for families and professionals. Michigan’s cost of living is lower than the national average, which means that beyond housing, other essentials like food, utilities, and healthcare are more affordable.
10. Arkansas
Arkansas offers incredible value for homebuyers, with a median house price of just $127,800. This makes it one of the most affordable states in the country to purchase a home. With a median household income of $60,700, it’s easy to see how residents can comfortably afford the estimated monthly mortgage payment of $784, which results in an income-to-mortgage ratio of 12.00% providing plenty of breathing room for other financial priorities.
In addition to affordability, Arkansas boasts a stunning natural landscape with mountains, forests, and lakes that make it an ideal location for outdoor enthusiasts. The state also offers a slower pace of life, which can be appealing for families or retirees looking to escape the fast-paced urban grind.
Cities like Little Rock and Fayetteville offer a mix of affordable housing, good schools, and a strong sense of community, while still having access to city amenities.
11. Alabama
Alabama is a fantastic state for those looking to buy a home without stretching their budget too far. With a median house price of $142,700, it offers affordable housing options while still providing access to quality living. The median household income of $66,700 means that many residents can comfortably manage the estimated monthly mortgage payment of $875, which equates to an income-to-mortgage ratio of 12.20% allowing for flexibility in managing other expenses.
Beyond affordability, Alabama is rich in culture and natural beauty. From the stunning beaches of the Gulf Coast to the Appalachian foothills, the state offers plenty of opportunities for outdoor recreation. Cities like Birmingham and Huntsville are bustling with activity, with a growing tech industry and strong healthcare sector offering steady job opportunities.
The cost of living in Alabama is lower than the national average, which makes it easier to manage day-to-day expenses. The state’s combination of affordable housing, job opportunities, and rich cultural heritage makes it an attractive place to live for families, retirees, and professionals alike.
12. North Dakota
North Dakota is an attractive state for those seeking a balance between affordable housing and a strong economy. With a median house price of $193,900, it is on the higher end of affordable states but still provides excellent value when compared to the national average. The median household income of $90,100 means residents generally have a higher earning potential, and with an estimated monthly mortgage payment of $1,189, the income-to-mortgage ratio of 12.27% suggests a manageable cost of living.
The state’s economy is thriving, thanks in part to a booming energy sector and a strong agricultural presence. Cities like Fargo and Bismarck are growing rapidly, offering job opportunities and a relatively low unemployment rate.
The overall cost of living is still lower than in many larger states, allowing residents to save more and enjoy a high standard of living. In addition to the economic benefits, North Dakota is known for its natural beauty, with plenty of outdoor activities like hiking, fishing, and winter sports.
13. Kentucky
Kentucky offers an appealing combination of affordable housing and a high quality of life, making it a fantastic option for homebuyers. With a median house price of just $141,000, it’s an affordable state for those looking to buy without breaking the bank. The median household income of $65,100 makes it manageable for residents to pay an estimated monthly mortgage payment of $864, which results in an income-to-mortgage ratio of 12.35% giving homeowners financial flexibility and room to plan for other life goals.
Beyond affordability, Kentucky offers a rich cultural experience, particularly for fans of history, bourbon, and horse racing. The state is home to scenic landscapes like the Appalachian foothills and the Kentucky Bluegrass region, which provides plenty of opportunities for outdoor activities.
Cities like Louisville and Lexington are vibrant, with a growing economy in sectors like healthcare, education, and manufacturing. The cost of living in Kentucky is lower than the national average, which helps residents save more while still enjoying city amenities and beautiful countryside.
14. Missouri
Missouri is an excellent choice for homebuyers looking for a blend of affordable housing and a diverse economy. With a median house price of $157,200, it provides a solid balance between affordability and quality. The median household income of $72,300 allows many families to comfortably manage their estimated monthly mortgage payment of $964, which results in an income-to-mortgage ratio of 12.40%, a manageable percentage that ensures financial stability.
The state boasts a strong economy, with major cities like St. Louis and Kansas City offering opportunities in industries such as healthcare, technology, and manufacturing. Additionally, Missouri offers a mix of urban conveniences and rural charm.
Living in Missouri also means enjoying a lower cost of living compared to the national average. From affordable housing to reasonably priced groceries and healthcare, residents can stretch their dollars further. The state’s rich history, combined with its scenic rivers, parks, and cultural attractions, makes it a wonderful place to settle down.
15. South Dakota
South Dakota offers a unique mix of affordable housing and economic opportunity, making it an attractive option for homebuyers in 2025. With a median house price of $167,100, it’s still well below the national average, making it accessible for many buyers looking to get more value for their money. The median household income of $75,500 supports a monthly mortgage payment of $1,025, which results in an income-to-mortgage ratio of 12.62%.
The state is known for its low taxes, including no state income tax, which helps residents keep more of their earnings. This is especially attractive to families and individuals looking to maximize their savings. Moreover, South Dakota is home to a strong job market, particularly in healthcare, finance, and agriculture.
From the stunning Black Hills to the cultural and historical significance of cities like Sioux Falls, South Dakota offers a high quality of life. The low cost of living and natural beauty make it an ideal place to live, with plenty of opportunities for outdoor activities and a relaxed lifestyle.
Protect Your Investment: The Importance of Tenant Screening
Purchasing a home in an affordable market is just the first step toward securing your financial future. If you’re considering renting out your new home in the future, knowing your tenants can make all the difference. A solid tenant screening process ensures you can trust who you rent to and maintain a steady cash flow.
By using RentRisk’s tenant screening service, you can analyze potential tenants based on financial history, criminal records, and rental reliability, ensuring you’re always ready for the next step in property ownership.
Want to protect your investment with a reliable screening service? Start tenant screening today!
Key Takeaways
- States like Mississippi, West Virginia, and Missouri offer some of the most affordable housing markets in the country, with median home prices well below the national average.
- Many states, such as Indiana and Ohio, offer lower monthly mortgage payments, making homeownership more accessible for first-time buyers and those on a budget.
- States like North Dakota and South Dakota have strong household incomes, supporting homebuyers in managing monthly mortgage payments.
- Each state offers unique living conditions, from the bustling cities of Missouri and Michigan to the scenic landscapes of Kentucky and South Dakota.
- States like South Dakota benefit from low taxes, while states like Nebraska and Indiana offer a high quality of life with affordable living expenses.
- The income-to-mortgage ratios across these states provide financial flexibility, making it easier for homeowners to manage their finances.
