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7 States With Cheap Housing Markets and Low Property Taxes

7 States With Cheap Housing Markets and Low Property Taxes

SondraP / Getty Images/iStockphoto

SondraP / Getty Images/iStockphoto

When you buy a home, your monthly expenses can be much higher than your mortgage payment. Home insurance, maintenance costs, homeowners association dues, and property taxes can add hundreds or even thousands of dollars to your monthly expenses. That’s why it’s important to keep all of these costs in mind when looking for a home.

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To help you find places where you can keep your overall costs low, GOBankingRates compiled data from The Tax Foundation and the U.S. Census Bureau to find states where both home prices and property taxes are low. If you’re looking to buy a home in one of these seven states, your dollar could go a lot further and bring you one step closer to your dream of homeownership.

Let’s dig a little deeper into some bargain markets for smart buyers:

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Alabama

  • Tax rate: 0.40%

  • Average house value: $200,900

  • Average annual property tax: €803.59

Alabama has one of the lowest property tax rates in the country, with average home prices about 45% below the national average.

When you add these two together, you end up with one of the few states where the average annual property tax is around $800 per month, or less than $67 per month.

According to U.S. News and World Report, Alabama also has the third-lowest cost of living in the country, making it very affordable.

Louisiana

  • Tax rate: 0.56%

  • Average house value: $196,300

  • Average annual property tax: $1,095.89

Are you looking for a monthly property tax rate of around $91? Then consider buying your home in Louisiana. With property tax rates that are about half the national average and median home values ​​under $200,000, Louisiana’s housing market is extremely affordable.

However, according to U.S. News and World Report, Louisiana ranks #48 in median household income. This can make it difficult for Louisiana residents to find a home in any but the most affordable states.

Wyoming

  • Tax rate: 0.56%

  • Average house value: $252,800

  • Average annual property tax: $1,404.42

Those who enjoy the great outdoors should consider buying a home in Wyoming, and it won’t cost a dime. Property taxes are about 50% of the national average, and home prices are more than $100,000 below the median nationwide.

If you add it all up, you’ll end up with a monthly property tax bill of about $117.

Kentucky

  • Tax rate: 0.83%

  • Average house value: $206,600

  • Average annual property tax: $1,710.91

Kentucky’s property tax rates are relatively high compared to others on this list, though they’re still significantly below the national average. Low median home values ​​in the state help keep the average annual property tax bill down to nearly $1,700, or about $142 per month.

The state does rank 46th in annual household income, but that’s partly why home prices remain low nationally.

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Nevada

  • Tax rate: 0.59%

  • Average house value: $232,400

  • Average annual property tax: $1,369.60

In addition to low property tax rates and home appreciation, Nevada residents do not have to pay state income taxes. This can free up more of their monthly budget for housing payments.

The median income for Nevada residents is relatively high, ranking 23rd in the nation according to U.S. News and World Report. This makes housing in the state even more affordable.

Arkansas

  • Tax rate: 0.64%

  • Average house value: $179,800

  • Average annual property tax: $1,154.52

Homes in Arkansas are among the most affordable in the country, averaging less than $180,000. While property tax rates are slightly higher than in some states, they’re still far from the national average of 1.10%, according to data from the U.S. Census Bureau.

According to U.S. News and World Report, Arkansas is the most affordable state in the country. Affordable housing and property taxes should come as no surprise.

Utah

  • Tax rate: 0.57%

  • Average house value: $275,400

  • Average annual property tax: $1,570.69

Utah property tax rates are about half the national average of 1.10%, and home prices are still well below the U.S. median. As a result, you only need to save about $131 per month to pay your annual property taxes.

According to U.S. News and World Report, Utah ranks 9th in the U.S. for median household income, making housing very affordable for residents of the state.

By the way, USNWR also ranks Utah #1 in terms of “best states overall,” meaning the state has 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