Think owning a home is out of reach? Not everywhere. Some states have houses selling for less than the national average rent. It’s not just rural shacks out in the middle of nowhere—there are towns in places like West Virginia, Ohio, and Mississippi where homes go for under $100,000. That’s less than a new truck or about the price of a really good used car.
But cheap doesn’t always mean a steal. You’ve got to check if the town has jobs, how high the property taxes are, and what the neighborhood feels like after dark. Sure, you could grab a three-bedroom home in Indiana for the price of a condo down south, but what about good grocery stores or a decent vet for your dog?
If your goal is to get the best bang for your buck, looking at the right places is everything. States like Oklahoma and Arkansas have small cities with brand new houses for less than rent in bigger cities. But don’t just pick by price—think about how day-to-day life fits your needs. And as someone who’s moved with a very fussy dog in tow (hey, Bella!), I can say the wrong neighborhood can make you want to move again fast.
- The Cheapest States for Housing Right Now
- What You Actually Get for the Price
- Hidden Costs and Local Pros & Cons
- Tips for Finding Legit Cheap Homes
The Cheapest States for Housing Right Now
If you’re staring at home prices in places like California, you might think cheap real estate is a thing of the past. But that’s not the case everywhere in the country. The Midwest and the South still have spots where cheapest houses don’t just exist—they’re everywhere.
Based on recent sales and 2024 housing data, West Virginia holds the crown for the lowest median home price. You can buy a house here for less than $160,000—sometimes way less if you’re okay with a fixer-upper. Mississippi and Ohio are right behind, with average prices floating around $175,000 or even less in smaller towns.
Arkansas is another budget-hunter’s dream. Median prices in the state are under $200,000, and you’ll find loads of listings for even less in places like Pine Bluff or Jonesboro. Oklahoma and Indiana also deserve mention, as houses in cities like Tulsa or Fort Wayne regularly list below the national averages for rent, not just mortgages.
Here’s a quick look at the states that pop up again and again for cheap houses:
- West Virginia — Lowest overall home prices, but rural
- Mississippi — Affordable with small-town charm
- Ohio — Urban and suburban options, lower costs
- Arkansas — Consistent record of deals under $200K
- Oklahoma — Plenty of inventory in Tulsa and Oklahoma City
- Indiana — Midwest living with bargain homes
Just a warning—some of these places have smaller job markets, so check employment options if you’re thinking of making a move. But if low monthly payments are your top priority, these states are still the place to look for serious savings on a home.
What You Actually Get for the Price
So, what do cheap houses look like in reality? In states like West Virginia, you can find a move-in ready, 1,300-square-foot, three-bedroom house for $90,000 or less. In places like Mississippi or Ohio, listings pop up for under $120,000 that include a backyard, real closets, and sometimes even surprises like hardwood floors or finished basements. You’re not just buying bricks—you’re getting a full-fledged spot to call home.
Don’t expect tons of brand-new appliances or HGTV-level makeovers. A lot of cheap homes in the South or Midwest were built in the seventies or eighties, needing just paint and elbow grease. In Indiana, for example, you’ll find neat two-bedroom ranch homes for under $40,000, usually with big yards but sometimes with ancient heating systems or roofs begging for a fix.
Here’s the breakdown of what your money usually buys in the cheapest houses markets:
- Square footage: Most homes range from 900 to 1,500 square feet, enough room for a family or someone who hates apartment living.
- Lot size: You can expect at least a third of an acre, which is wild compared to the postage-stamp yards in pricier states.
- Interior quality: Think old carpets, retro tiles, and basic kitchens, but plenty of facelift potential.
- Location: Often close to local schools and small-town shops (but you won’t see a Whole Foods down the street).
- Perks: Driveways, maybe a garage, and sometimes even a fenced yard for your pet.
Home insurance and taxes also run a lot lower in affordable states—sometimes it’s half or a third of what you’d pay in places like New Jersey or California. Sure, the houses aren’t fancy, but you actually get the keys to something you own. And, honestly, there’s something pretty nice about that.
Hidden Costs and Local Pros & Cons
So you’ve found that super affordable house. Before you pop the bubbly, let’s talk about what those cheap prices might not show you upfront. Sometimes, what looks cheap can sneak up and take a bite out of your wallet once you move in.
First, watch out for property taxes. Some areas in New York and Illinois have low sticker prices but sky-high annual taxes. And in states like Texas (where there’s no state income tax), those property taxes can make the house way less of a deal than you think.
| State | Median Home Price | Avg. Property Tax Rate | Annual Home Insurance (Avg.) |
|---|---|---|---|
| West Virginia | $155,000 | 0.59% | $1,100 |
| Ohio | $204,900 | 1.52% | $1,400 |
| Mississippi | $162,000 | 0.81% | $1,350 |
| Texas | $298,000 | 1.60% | $2,200 |
Next up, utilities. Older homes can have drafty windows and old-school heating, making your monthly bills much bigger than you expect. Also, insurance can be pricey if you’re in Tornado Alley (like Oklahoma) or close to the Gulf Coast. And if the area floods, nobody’s going to give you cheap coverage. You could easily pay a few thousand a year just for peace of mind.
Then, there’s the local job scene and stuff to do. Some of the cheapest places have fewer jobs and not much nightlife or entertainment. Unless you work remotely or love quiet towns, think twice before trading it all for a lower mortgage.
- Check commute times. Cheaper neighborhoods can sometimes mean longer drives to everything you need.
- Talk to locals about safety. Low prices can mean higher crime in some spots.
- If you have pets (Bella would totally agree), make sure there are vets and parks close by.
On the plus side, cheap housing states often have a slower pace, close-knit communities, and more green space. In places like Arkansas and Alabama, you could get a big yard and friendly neighbors who'll help dig your car out of snow or lend you a lawn mower.
But don’t get blinded by the low price tag. Factor in the cheapest houses keyword you’ve been searching for, but add up every monthly cost before jumping in. The right house is a mix of price, practicality, and the kind of life you want day to day.
Tips for Finding Legit Cheap Homes
Anyone can spot a low price on a website, but getting a real deal that’s actually worth it? That takes more than just clicking and crossing your fingers. Here’s what actually works if you want to find cheapest houses and not get burned along the way:
- Don’t skip local agents. Agents in small towns know the listings before they hit big sites. Sometimes, a $70,000 house doesn’t even show up online because it’s sold by word of mouth.
- Watch auctions and foreclosures. Sites like Auction.com, Zillow Foreclosure, and your county courthouse list homes going for way below market value. The flip side: these homes usually need work, and you’ll want to see them in person first.
- Drive around. Seriously, some of the best deals have an old "For Sale By Owner" sign out front. Many folks in small towns still list this way to save on fees.
- Research property taxes and insurance. Sometimes taxes can be almost as high as the house payment, especially in states like New Jersey or Illinois—even cheap homes can cost you more in the long run.
- Check neighborhood trends. A cheap house in a place that’s losing jobs or population might get even cheaper—while you live there. Look up city data to see if businesses are opening or closing, and chat with a few locals before making any offers.
If you want numbers to help with your search, here’s what you might expect for an average home price in some of the cheapest states right now:
| State | Median Home Price (2024) | Annual Property Tax (% Avg.) |
|---|---|---|
| West Virginia | $155,000 | 0.58% |
| Mississippi | $165,000 | 0.65% |
| Arkansas | $175,000 | 0.62% |
| Oklahoma | $180,000 | 0.74% |
| Ohio | $190,000 | 1.56% |
Before signing anything, always check the home’s condition. If it needs a new roof or the foundation’s cracked, those repairs can wipe out all your savings. Bringing a local inspector can save you from some ugly surprises. And if it sounds too good to be true, it usually is—so trust your gut, and don’t rush the process.