The typical mortgage payment in these housing markets consumes less than a third of the median household monthly income.
Finding a home that fits your needs while leaving money in your pocket to enjoy life can feel like an impossible journey at times. But real estate markets vary widely, and there are still markets where homes are considered affordable. If buying a home is a priority for you and you have flexibility on where to live, you might want to consider one of these local markets.
The cities on Zillow’s list of most affordable places to live all have one thing in common: The cost of housing consumes less than 30% of a typical household’s budget — in some cases, a lot less.
The rankings are based on a Zillow® analysis of metros across the country that takes into account the value of a typical home along with the median household income. Also considered is the monthly mortgage payment needed to buy a typical home if the buyer pays current interest rates and puts 20% down toward the purchase.
These factors combined produce a “mortgage-to-income ratio” — the share of your income that goes toward housing costs. Paying roughly a third of your income toward housing is generally considered affordable as it tends to mean that you have money left for other necessities, to pay down debt and save for the future.
Of course, determining what you can afford when shopping for a home can involve a number of considerations beyond your mortgage-to-income ratio. Read on for tips on determining your price range, and remember you can reach out to a lender if you have questions
The most affordable places to live
1. Pittsburgh, PA
Three rivers form the heart of this waterfront city, which boasts 446 bridges — more than Venice, Italy.
- Typical home value: $202,454
- Share of monthly income needed to pay the typical mortgage: 19%
- Typical monthly mortgage payment: $1,053
- Years to save for 20% down payment: 5.3
2. Jackson, MS
Nicknamed “The City With Soul,” this capital city is steeped in history and delivers big on southern hospitality.
- Typical home value: $185,338
- Share of monthly income needed to pay the typical mortgage: 22%
- Typical monthly mortgage payment; $964
- Years to save for 20% down payment: 5.7
3. Syracuse, NY
A regional hub for education and entertainment, this city in central New York is expected to benefit from the construction of a mega-complex of computer chip plants in its northern suburbs.
- Typical home value: $212,404
- Share of monthly income needed to pay the typical mortgage: 23%
- Typical monthly mortgage payment: $1,105
- Years to save for 20% down payment: 5.8
4. Toledo, OH
Known for eclectic architectural styles and its long history as a center of glass manufacturing, Toledo is full of surprises, including an 8,600 square-foot aquaponics farm in the heart of downtown.
- Typical home value: $176,787
- Share of monthly income needed to pay the typical mortgage: 24%
- Typical monthly mortgage payment: $920
- Years to save for 20% down payment: 5.6
5. Wichita, KS
Despite its size, Wichita is one of the least congested cities in the U.S., with average one-way commute times of about 19 minutes.
- Typical home value: $201,780
- Share of monthly income needed to pay the typical mortgage: 24%
- Typical monthly mortgage payment: $1,050
- Years to save for 20% down payment: 5.7
6. Akron, OH
Akron is home to several higher education institutions, including the University of Akron and Kent State University, which infuse the city with youthful energy.
- Typical home value: $207,190
- Share of monthly income needed to pay the typical mortgage: 24%
- Typical monthly mortgage payment: $1,078
- Years to save for 20% down payment: 5.8
7. St. Louis, MO
Known as “The Gateway to the West,” St. Louis’ rich history as a frontier town is reflected in its diverse architecture, historic neighborhoods and landmarks.
- Typical home value: $242,214
- Share of monthly income needed to pay the typical mortgage: 25%
- Typical monthly mortgage payment: $1,260
- Years to save for 20% down payment: 6
8. Augusta, GA
Georgia’s second oldest city, known worldwide for an annual golf tournament, sits along the Savannah River, with easy access to outdoor recreation.
- Typical home value: $224,839
- Share of monthly income needed to pay the typical mortgage: 25%
- Typical monthly mortgage payment: $1,170
- Years to save for 20% down payment: 6.4
9. Rochester, NY
This city in western New York has gone through many iterations, and while industries have come and gone, the city has maintained a rich arts scene and hosts several cultural festivals each year.
- Typical home value: $233,753
- Share of monthly income needed to pay the typical mortgage: 25%
- Typical monthly mortgage payment: $1,216
- Years to save for 20% down payment: 6.2
10. Detroit, MI
This riverfront city, which sits along the Canadian border, embraces diversity and continues to remake itself and its downtown core.
- Typical home value: $240,536
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,251
- Years to save for 20% down payment: 6.2
11. Birmingham, AL
The city, which played a significant role in the U.S. civil rights struggle of the 1960s, boasts a rich cultural scene and renowned medical and health care institutions.
- Typical home value: $247,702
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,289
- Years to save for 20% down payment: 6.7
12. Baton Rouge, LA
Home to Louisiana State University, Baton Rouge’s rich cultural heritage is influenced by French, Spanish, African, and Creole traditions that live on in its music, food and festivals.
- Typical home value: $228,418
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,188
- Years to save for 20% down payment: 6.5
13. Indianapolis, IN
Home to one of the oldest auto racing circuits in the U.S., this waterfront city landed a spot as one of the most affordable U.S. cities on Zillow’s list of the hottest housing markets for 2024.
- Typical home value: $270,026
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,405
- Years to save for 20% down payment: 6.6
14. Little Rock, AR
This capital city won a place on Zillow’s list of the best cities for first-time buyers in 2023.
- Typical home value: $212,713
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,107
- Years to save for 20% down payment: 6.5
15. Des Moines, IA
A study in contrasts, Des Moines hosts one of the largest and oldest state fairs in America and serves as a major center for insurance and financial services.
- Typical home value: $270,827
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,409
- Years to save for 20% down payment: 6.1
16. Columbia, SC
A typical home in this capital city, located in the middle of the state, goes from listing to pending in about 17 days.
- Typical home value: $243,161
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,265
- Years to save for 20% down payment: 7
17. Cleveland, OH
Known for attractions like the Rock & Roll Hall of Fame and a theater district that is second in size only to New York City.
- Typical home value: $215,913
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,123
- Years to save for 20% down payment: 6.1
18. Buffalo, NY
Known for epic snowstorms and its proximity to Niagara Falls, Buffalo topped the list of Zillow’s hottest markets for 2024.
- Typical home value: $244,825
- Share of monthly income needed to pay the typical mortgage: 26%
- Typical monthly mortgage payment: $1,274
- Years to save for 20% down payment: 6.5
19. Grand Rapids, MI
Located on the Grand River, Grand Rapids is known for its breweries and relatively low cost of living.
- Typical home value: $309,531
- Share of monthly income needed to pay the typical mortgage: 27%
- Typical monthly mortgage payment: $1,610
- Years to save for 20% down payment: 7.3
20. Memphis, TN
Known as the official home of the blues, Memphis is home to Elvis Presley’s mansion, Graceland, one of the most visited homes in the U.S.
- Typical home value: $234,635
- Share of monthly income needed to pay the typical mortgage: 27%
- Typical monthly mortgage payment: $1,221
- Years to save for 20% down payment: 7
21. Oklahoma City, OK
The energy industry fuels the economy here, but cowboy culture is still alive and well.
- Typical home value: $229,529
- Share of monthly income needed to pay the typical mortgage: 27%
- Typical monthly mortgage payment: $1,194
- Years to save for 20% down payment: 6.4
22. Louisville, KY
Louisville boasts skyscrapers and the largest historic preservation district featuring Victorian architecture in the U.S.
- Typical home value: $247,856
- Share of monthly income needed to pay the typical mortgage: 28%
- Typical monthly mortgage payment: $1,290
- Years to save for 20% down payment: 6.9
23. Harrisburg, PA
Located on the east bank of the Susquehanna River, this capital city serves as the metropolitan center for about 400 communities.
- Typical home value: $274,217
- Share of monthly income needed to pay the typical mortgage: 28%
- Typical monthly mortgage payment: $1,427
- Years to save for 20% down payment: 6.9
24. Cincinnati, OH
Located in a river valley, Cincinnati came in second on Zillow’s list of hottest markets for 2024.
- Typical home value: $271,766
- Share of monthly income needed to pay the typical mortgage: 28%
- Typical monthly mortgage payment: $1,414
- Years to save for 20% down payment: 6.9
25. Tulsa, OK
This spirited city is known for its classic and original Art Deco architecture and arts scene.
- Typical home value: $227,703
- Share of monthly income needed to pay the typical mortgage: 28%
- Typical monthly mortgage payment: $1,185
- Years to save for 20% down payment: 6.7
Ways to understand what you can afford
There are several ways to determine how much you can spend on a home so that you’re not spending more than a third of your income on housing. Here are three of the most common:
Use the Affordability Calculator
The Affordability Calculator is a great way to get a big picture view of what you can afford. You can keep it simple by entering your annual income, monthly debt expenses and how much you plan to put down toward the purchase. Or you can dive deeper by seeing different scenarios based on varying interest rates and loan terms.
Use a debt-to-income calculator
Zillow’s debt-to-income calculator takes into account your annual income and monthly debts such as student loans, credit card payments and the like to determine yourdebt-to-income ratio (DTI). The ratio represents the share of your gross monthly income that goes toward paying down debt every month. Lenders use the ratio to help measure your ability to manage monthly payments and repay a home loan.
Get pre-qualified and/or pre-approved and talk to a loan officer
Another way to get a more precise determination of what you can afford is to get pre-qualified and/or pre-approved by a lender. Pre-qualification generally involves a review of your creditworthiness to establish how much a lender might be willing to lend you to buy a home, while pre-approval involves a more detailed review of your finances and a preliminary commitment to lend you a certain amount of money to buy a home under certain conditions.
A lender can guide you through the process and explain the options available. Together with a real estate agent, you should be able to focus your search so that you’re looking only at homes you can afford.