Yahoo Finance 7 States With Cheap Housing Markets and Low Property Taxes
When you buy a home, your monthly expenses can run much higher than your mortgage payment. Home insurance, maintenance costs, home association dues and property taxes can spike your monthly outlay by hundreds or even thousands of dollars. That’s why it’s important to keep all of these costs in mind when searching for a home.
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To help direct you towards places that can keep your total cost low, GOBankingRates compiled data from The Tax Foundation and the U.S. Census Bureau to locate states where both home prices and property taxes are low. If you’re looking for a home in one of these seven states, your dollar can stretch a lot farther and bring your dream of homeownership closer.
Let’s dig a little deeper into some bargain markets for smart buyers:
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Alabama
Tax rate: 0.40%
Median home value: $200,900
Average annual property tax: $803.59
Alabama has one of the lowest property tax rates in the country, along with average home prices that are roughly 45% below the national average.
Put the two together and you’ll find one of the few states where the average annual property tax payment is roughly $800 per month, or less than $67 per month.
According to U.S. News and World Report, Alabama also has the 3rd-lowest overall cost of living in the country, making it an extremely affordable.
Louisiana
Tax rate: 0.56%
Median home value: $196,300
Average annual property tax: $1,095.89
Looking for a monthly property tax bill of roughly $91? Consider buying your home in Louisiana. With property tax rates about half the national average and median home values below $200,000, Louisiana’s housing market is extremely affordable.
According to U.S. News and World Report, however, Louisiana ranks #48 in average household income. This can make it hard for Louisiana residents to search for a home in all but the most affordable states.
Wyoming
Tax rate: 0.56%
Median home value: $252,800
Average annual property tax: $1,404.42
Those enjoying the wide expanses of the great outdoors might fancy buying a home in Wyoming, and it won’t cost a pretty penny. Property tax rates run about 50% of the national average, and home prices are more than $100,000 below the median price across the country.
Add it all up and you’re looking at a monthly property tax bill of about $117.
Kentucky
Tax rate: 0.83%
Median home value: $206,600
Average annual property tax: $1,710.91
Kentucky property tax rates are relatively high compared with others on this list, although still significantly below the national average. Low median home values in the state help bring down the average annual property tax rate close to $1,700, or roughly $142 per month.
The state does rank #46 in terms of annual household income, however, part of the reason why housing values remain depressed on a national basis.
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Nevada
Tax rate: 0.59%
Median home value: $232,400
Average annual property tax: $1,369.60
In addition to low property tax rates and home valuations, Nevada residents don’t have to pay any state income tax. This can free up more of their monthly budgets for housing payments.
The median income for Nevada residents is relatively high, ranking #23 in the country according to U.S. News and World Report. This makes housing even more affordable in the state.
Arkansas
Tax rate: 0.64%
Median home value: $179,800
Average annual property tax: $1,154.52
Homes in Arkansas are among the most affordable in the country, coming in at an average below $180,000. While property tax rates are a bit higher than some states, they are still a far cry from the national average of 1.10%, according to U.S. Census Bureau data.
U.S. News and World Report dubs Arkansas the most affordable state in the country on an overall basis, so affordable housing and property tax rates shouldn’t come as a surprise.
Utah
Tax rate: 0.57%
Median home value: $275,400
Average annual property tax: $1,570.69
Utah property tax rates run about half of the 1.10% national average, and home prices are still far below the median in America. As a result, you’d only have to save about $131 per month if you want to pay your annual property tax bill.
As Utah ranks #9 in the country in median household income, according to U.S. News and World Report, housing can be extremely affordable for state residents.
As a side note, USNWR also ranks Utah #1 in terms of “best states overall,” meaning it boasts a very high quality of life.
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This article originally appeared on GOBankingRates.com: 7 States With Cheap Housing Markets and Low Property Taxes
