Mortgage payments aren’t the only monthly outlay that might add up when you buy a house. Your monthly expense can increase by hundreds—if not thousands—of dollars due to property taxes, insurance, expenses for repairs and upkeep, and house association dues. So, while you’re house hunting, make sure to factor in all of these sums.
To assist you in finding states with low property taxes and home prices, GOBankingRates analyzed data from the U.S. Census Bureau and The Tax Foundation to determine which states offer the best value for your money. A property in one of these seven states will make your home-buying dollar go a lot farther, bringing the dream of owning in reach.
It might be wise to delve a bit more into several cheap marketplaces for astute shoppers:
1. The state of Alabama
Rate of taxation: 400%
The median home value is $200,900.
Ordinary yearly property tax: $803.59
Along with average home prices that are around 45 percent lower than the national average, Alabama boasts one of the nation’s lowest property tax rates.
If you add them up, you’ll see that this is one of the rare states where paying property taxes each year amounts to less than $67 a month, or about $800 total.
U.S. News & World Report ranks Alabama as having the third-lowest overall cost of living in the nation, indicating that it is a very affordable state.
2. New Orleans
A tax rate of 0.56 percent
Residential property value: $196,300
Typical yearly tax bill: $1,095.89
Hope you can handle a property tax bill of about $91 per month. Looking into purchasing a property in Louisiana. Homebuyers will find excellent value in Louisiana’s market, as the state has median home prices below $200,000 and property tax rates that are about half the national average.
U.S. News and World Report suggests that Louisiana has the 48th highest average household income. If this is the case, homebuying in areas with higher housing costs may be out of reach for inhabitants of Louisiana.
3. Wyoming
Rate of Wyoming’s sales tax: 0.56%
At $252,800, the median home value
Typical yearly building tax: $1,404.42
A home in Wyoming won’t cost a beautiful penny, yet it might be a fun place to settle down for nature lovers. Not only are property taxes around half of the national average, but home prices are over $100,000 lower than the national norm.
After all the expenses are deducted, your monthly property tax bill will be around $117.
4. The Bluegrass State,
Rate of taxation: 0.83 percent
An average home is worth $206,600.
Typical yearly sum for property taxes: $1,710.91
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While lower than the national average, Kentucky’s property tax rates are far higher than those of the other states on this list. The state’s relatively low median house value contributes to a monthly property tax rate of about $142, which brings the average yearly rate close to $1,700.
Although the state ranks #46 in terms of annual household income, one reason why national home values remain depressed is because of this.
5. Las Vegas
Rate of taxation: 0.59%
The typical home is worth around $232,400.
Yearly property tax average: $1,369.60
Nevada residents enjoy a number of tax benefits, including no state income tax, cheap property taxes, and stable home values. Making a larger portion of their monthly budget available for housing payments is possible with this.
Nevada has a relatively high median income, ranking #23 in the US, according to U.S. News and World Report. Affordability of housing in the state is further enhanced by this.
6. Washington State
Rate of taxation: 0.64 percent
The typical house is worth around $179,800.
Property tax average: $1,154.52 per year.
Real estate in Arkansas is among the most reasonably priced in the nation, with home prices averaging less than $180,000. Data from the United States Census Bureau shows that property tax rates in this state are significantly lower than the national average of 1.10%, even though they are more than in certain other states.
Considering that Arkansas is named the most cheap state in the US overall by U.S. News and World Report, it is not surprising that housing and property tax rates are moderate.
7. Idaho
Idaho Tax rate: 0.57 percent
Property value: $275,400
Average yearly property tax: $1,570.69
With property taxes that are half of the national average and home prices that are still significantly lower than the median in America, Utah is a great place to make a home. You would only need to set aside approximately $131 monthly, then, to cover your property tax obligation annually.
Considering Utah’s median family income ranks #9 nationally, housing can be quite reasonable for state residents, according to U.S. News & World Report.
Interestingly, Utah is also ranked #1 among the “best states overall” by USNWR, indicating that its quality of life is exceptionally good.