10 Best Affordable Cities for Homebuyers on a Budget
These are the best affordable cities a median household income of 75k can afford.
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Homebuyers on a budget are more likely to make their home owning dreams a reality in several cities across the U.S., according to a new study from insurance broker Insurify.
In 2024 homes became increasingly more difficult to afford, especially for first-time buyers, due to high mortgage rates and real estate prices, along with low housing stock. In the first half of 2020, thanks to the pandemic, the difference in mortgage refinancing savings between high and low-income borrowers increased by 10. And as of January 2025, the median U.S. home selling price was $418,489, up 7% compared to the previous year, reports Redfin. The number of homes for sale increased by 2.5%.
"Low mortgage rates in 2020 and 2021 allowed a lot of people to stretch their budgets and buy slightly more expensive homes," Cassie Sheets, Data Journalist at Insurify tells Kiplinger. “But people who didn’t get in when rates were low have more limited choices. This is causing further wealth disparity.”
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In order to help homebuyers bridge this gap, Insurify has determined the most affordable and desirable cities that a median household income of $75,000 (the average as of 2022) could afford.
Best affordable cities for homebuyers on a budget
In order to determine the 10 best cities for homebuyers with a household income of $75,000, Insurify compared several factors — housing costs, broader cost of living, increases in home values, population growth, crime rates, and unemployment rates. Housing costs were based on a 5.5% interest rate and a 20% down payment in order to eliminate the variable of private mortgage insurance (PMI).
The study also followed the “30% rule” which instructs individuals to spend no more than 30% of their gross income on housing. Therefore, a household earning $75,000 annually should spend at most $1,865 a month on housing costs. As such, Insurify only considered metro areas with average monthly housing costs below this amount.
These are the best cities to buy affordable homes with a $75,000 income in 2024.
1. Champaign, Illinois
Monthly housing costs: $1,422
Median home value: $196,732
Average annual home insurance rate: $1,753
2. Peoria, Illinois
Monthly housing costs: $1,090
Median home value: $141,649
Average annual home insurance rate: $1,753
3. Detroit, Michigan
Monthly housing costs: $1,697
Median home value: $240,338
Average annual home insurance rate: $3,060
4. Mansfield, Ohio
Monthly housing costs: $1,075
Median home value: $166,899
Average annual home insurance rate: $1,192
5. El Paso, Texas
Monthly housing costs: $1,527
Median home value: $210,010
Average annual home insurance rate: $1,976
6. Duluth, Minnesota
Monthly housing costs: $1,468
Median home value: $229,846
Average annual home insurance rate: $1,989
7. Bangor, Maine
Monthly housing costs: $1,495
Median home value: $250,233
Average annual home insurance rate: $1,208
8. Lansing, Michigan
Monthly housing costs: $1,457
Median home value: $216,402
Average annual home insurance rate: $1,671
9. Rochester, New York
Monthly housing costs: $1,728
Median home value: $235,391
Average annual home insurance rate: $1,942
10. Syracuse, New York
Monthly housing costs: $1,597
Median home value: $215,724
Average annual home insurance rate: $1,942
Overall, if you’re looking for affordable housing, look at small-to-midsize Midwestern cities, where individuals can get the most for their money. Many of these cities have undergone revitalization projects and have plans for future development.
“Small-to-midsize cities offer more opportunities for homeownership on a median household income. The houses are more affordable, home insurance is cheaper, and many have seen some downtown revitalization,” says Sheets. "First-time homebuyers can contribute to these community improvements and can benefit from their home values rising as a result."
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