Once a pillar of the American Dream, homeownership is no longer a near-guaranteed achievement for the average person.
There are simply too many financial hurdles. We’ve got an inventory shortage driving up home prices and sky-high interest rates making mortgages impossibly expensive for many. Additionally, there’s the issue of lingering inflation and the fact that wages are widely failing to keep up with rising costs of living.
Though potentially financially challenging, homeownership may be more realistic than you think — particularly if you’re shopping for a home in a location where you don’t need an especially high salary to comfortably own.
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In a recent study, GOBankingRates found each state’s average 2024 home value and average monthly mortgage assuming buyers would choose a 30-year fixed-rate mortgage and make a 20% down payment with a 6.82% interest rate. From there, assuming housing costs could not exceed 30% of gross income, GOBankingRates found the minimum salary needed to comfortably afford a home in each state.
These are the 10 states where the least amount of income is required to buy a home in 2024.
Ohio
- 2024 average home value: $218,535
- 20% down payment: $43,707
- Loan amount: $174,828
- Monthly mortgage: $1,142
- Annual mortgage: $13,705
- Minimum salary needed to comfortably afford a home: $45,683
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Alabama
- 2024 average home value: $218,004
- 20% down payment: $43,601
- Loan amount: $174,403
- Monthly mortgage: $1,139
- Annual mortgage: $13,672
- Minimum salary needed to comfortably afford a home: $45,572
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Kansas
- 2024 average home value: $217,817
- 20% down payment: $43,563
- Loan amount: $174,253
- Monthly mortgage: $1,138
- Annual mortgage: $13,660
- Minimum salary needed to comfortably afford a home: $45,533
Iowa
- 2024 average home value: $212,367
- 20% down payment: $42,473
- Loan amount: $169,894
- Monthly mortgage: $1,110
- Annual mortgage: $13,318
- Minimum salary needed to comfortably afford a home: $44,394
Oklahoma
- 2024 average home value: $200,153
- 20% down payment: $40,031
- Loan amount: $160,122
- Monthly mortgage: $1,046
- Annual mortgage: $12,552
- Minimum salary needed to comfortably afford a home: $41,840
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Arkansas
- 2024 average home value: $198,364
- 20% down payment: $39,673
- Loan amount: $158,691
- Monthly mortgage: $1,037
- Annual mortgage: $12,440
- Minimum salary needed to comfortably afford a home: $41,467
Kentucky
- 2024 average home value: $196,412
- 20% down payment: $39,282
- Loan amount: $157,130
- Monthly mortgage: $1,026
- Annual mortgage: $12,318
- Minimum salary needed to comfortably afford a home: $41,058
Louisiana
- 2024 average home value: $195,240
- 20% down payment: $39,048
- Loan amount: $156,192
- Monthly mortgage: $1,020
- Annual mortgage: $12,244
- Minimum salary needed to comfortably afford a home: $40,813
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Mississippi
- 2024 average home value: $170,653
- 20% down payment: $34,131
- Loan amount: $136,523
- Monthly mortgage: $892
- Annual mortgage: $10,702
- Minimum salary needed to comfortably afford a home: $35,674
West Virginia
- 2024 average home value: $155,080
- 20% down payment: $31,016
- Loan amount: $124,064
- Monthly mortgage: $810
- Annual mortgage: $9,726
- Minimum salary needed to comfortably afford a home: $32,418
Methodology: For this piece GOBankingRates first found the (1) average 2024 home value for each state. GOBankingRates then found the average monthly mortgage by using the following assumptions: a 30-year fixed rate mortgage with 20% down payment with a rate of 6.82% as sourced from Freddie Mac for April 4, 2024, and there was no P&I, HOA fees or property tax included. With the monthly mortgage rate found, GOBankingRates was able to find the minimum salary needed to comfortably afford the home by assuming housing costs could not exceed 30% of gross income. All data was collected and is up to date as of June 13, 2024.
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This article originally appeared on GOBankingRates.com: The 10 States Where You Need the Least Amount of Income To Buy a Home in 2024
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