The typical U.S. home was worth $366,157 in September 2026, according to the Zillow Home Value Index. That number hides a wide gap. In a handful of Midwestern and Southern metro areas, the typical home is still worth less than $250,000, and in a few it is below $200,000.
To build this list, we took Zillow's September 2026 typical home values (seasonally adjusted, for single-family homes and condos) for the 150 largest U.S. metro areas. The 10 lowest-priced metros on that list are all in the Midwest or South. We then estimated a monthly payment for each one using Freddie Mac's average 30-year fixed rate of 7.18% for the week ending November 5, 2026, via FRED.
How to read the payment figures: they are hypothetical illustrations, not quotes or offers. Each figure is monthly principal and interest on a 30-year fixed loan at 7.18%, with 10% down on the typical home value. They leave out property taxes, homeowners insurance, mortgage insurance, HOA dues and closing costs. Those costs vary a lot by city, so the full monthly bill will be higher.
Chart: RateZip. Source: Zillow Home Value Index, September 2026. Typical home value, not a sale price.
1. Peoria, Illinois
- Typical home value: $174,845 (up 6.4% from a year earlier)
- Estimated principal and interest: about $1,066 a month
Peoria has the lowest typical value of any large metro in the country, and the fastest price growth on this list. Illinois property taxes run high, so budget for them on top of the loan payment.
2. Youngstown, Ohio
- Typical home value: $175,230 (up 4.8% from a year earlier)
- Estimated principal and interest: about $1,068 a month
Youngstown trails Peoria by less than $400, with values up nearly 5% in a year.
3. Shreveport, Louisiana
- Typical home value: $183,475 (up 3.8% from a year earlier)
- Estimated principal and interest: about $1,119 a month
Shreveport is the lowest-priced Southern metro on our list. Homeowners insurance in Louisiana can cost far more than the national average, so get a quote before you make an offer.
4. Beaumont, Texas
- Typical home value: $186,305 (up 3.8% from a year earlier)
- Estimated principal and interest: about $1,136 a month
Beaumont is on the Gulf Coast, so check the flood zone and windstorm coverage on any home you're considering.
5. McAllen, Texas
- Typical home value: $188,971 (down 0.4% from a year earlier)
- Estimated principal and interest: about $1,152 a month
McAllen is the largest metro on this list, and the only one where the typical value slipped over the past year. Texas has no state income tax, but its property taxes run above average.
6. Mobile, Alabama
- Typical home value: $194,638 (up 0.5% from a year earlier)
- Estimated principal and interest: about $1,187 a month
Prices have barely moved in a year. Alabama's property taxes are among the lowest in the country, which helps the full monthly cost.
7. Davenport, Iowa (Quad Cities)
- Typical home value: $194,778 (up 4.8% from a year earlier)
- Estimated principal and interest: about $1,188 a month
The Quad Cities metro straddles the Iowa-Illinois line, so property taxes can differ a lot depending on which side of the Mississippi you buy on.
8. Flint, Michigan
- Typical home value: $195,732 (up 4.1% from a year earlier)
- Estimated principal and interest: about $1,193 a month
Flint values are up about 4% in a year, still more than $170,000 below the national figure.
9. Lafayette, Louisiana
- Typical home value: $200,358 (up 2.8% from a year earlier)
- Estimated principal and interest: about $1,222 a month
Lafayette is right at the $200,000 mark. Like Shreveport, factor Louisiana insurance costs into the budget.
10. Toledo, Ohio
- Typical home value: $202,056 (up 3.3% from a year earlier)
- Estimated principal and interest: about $1,232 a month
Toledo rounds out the list, with a typical value about $164,000 below the U.S. level.
What buyers should keep in mind under $250,000
Real estate agents who answered RateZip's questions through Qwoted say homes at this price have become hard to find in pricier markets, and buyers usually have to give something up to get one.
"Homes under $250K are extremely rare in my market," said Cameron Walker, manager of the agent network at Clever Real Estate, who works in Washington state. "Buyers in this price range are typically better off looking in the Midwest and the South. I'm seeing that shift in the agent network that I manage across the country." Buyers at this price, he said, "should expect to trade two of the three factors of the home (size, condition, and/or location)."
April Guerra, a Realtor with LPT Realty in Austin, Texas, said the price tag is only the start. "I always encourage buyers to look beyond the purchase price and consider property taxes, insurance, and potential maintenance costs when determining what they can comfortably afford," she said. "A lower purchase price doesn't always mean a lower monthly payment."
- Taxes and insurance can change which city is cheapest. A $175,000 home with a high property tax bill and an expensive insurance premium can cost more each month than a $200,000 home in a low-tax state. Get local tax and insurance estimates before you compare cities.
- Lower-priced homes may need more work. Pay for a full inspection, and put aside money for repairs that come up early.
- Small loans still carry fixed closing costs. Lender and title fees don't fall in proportion to the loan amount, so compare the APR and Loan Estimates from more than one lender, not only the interest rate.
- A fixer-upper can complicate the loan. Riley Hextell, a broker with eXp Realty in Chicago, said government-backed loans are common on lower-priced homes, but they can be a poor fit for homes that need significant upgrades. "This can lead to the home not passing an appraisal, or to sellers not wanting to accept that loan type because of the repairs required for the home to pass," he said.
- Check down payment help. Many state housing finance agencies run down payment assistance programs aimed at first-time buyers in these price ranges.
Methodology
Home values come from the Zillow Home Value Index for single-family homes and condos (middle price tier, smoothed and seasonally adjusted) for September 2026. ZHVI is a typical home value, not a median sale price. We covered the 150 largest metros by Zillow size rank. The Midwest and South follow U.S. Census Bureau regions. Just missing the list: Brownsville, Texas ($204,552), Jackson, Mississippi ($212,335) and Montgomery, Alabama ($212,437). Payments use the standard amortization formula, with 90% of the typical value financed for 30 years at 7.18% (Freddie Mac PMMS, week ending Nov. 5, 2026).
This article is for educational purposes only and isn't financial advice. Payment figures are hypothetical illustrations, not loan offers.
RateZip is operated by Peklava LLC, DBA RateZip, a licensed mortgage broker (NMLS ID 1592292). We are compensated by some of the partners shown, which may affect which offers appear and where. It does not affect our reporting or recommendations. See our editorial standards.