10 Best Places To Buy A Home With A Household Income Of $65,000

When it comes to choosing a city where you want to put down roots, there are many factors at play. Those may include the surrounding neighborhoods, culture and entertainment amenities, school districts, job opportunities and outdoor offerings. While all of these are important when deciding on a next locale, there is one that may be most essential of all – whether one can comfortably afford to live there.

Despite 2022’s rising interest rates and housing prices, there are many places that are still affordable for many different salaries. Rocket Homes^SM teamed up with BestPlaces.net to find some ideal locations to buy a home on a $65,000 household income – from small Midwestern towns and hidden gems to bustling metro areas.

Finding The Best Places To Buy A Home On A $65,000 Household Income

To find the most affordable places for those with a household income of $65,000, we first had to determine the highest monthly mortgage payment for that income, assuming residents spend no more than 30% of their gross household income on their monthly payment (a general rule-of-thumb). Review our methodology section to see how we calculated the estimated payment and what assumptions are included.

With a $65,000 household income that maximum mortgage payment would be $1,625.

After weeding out all cities with an average estimated mortgage payment above that number, the researchers at BestPlaces.net then used the following metrics to determine the best places to buy a new home within this group.

• Income tax
• Sales tax
• 2021 median household income
• Unemployment rate
• Health of residents
• Climate hazard risk
  

Cities with a crime rate higher than 50% of the country were also filtered out of this study. To provide a wider range of areas, we removed any other lower ranking cities within a 150-mile radius of a higher-ranking city in the same state.

1. Wausau, Wisconsin

• Metro population: 135,692
• Median home price: $228,770
• Estimated monthly mortgage payment: $1,482

Home to more than 60 parks and forest units, the nation’s largest curling facility and the highest skiable peak in Wisconsin, Wausau has much to boast about. That also includes its low crime rate, which is better than 95% of the country. Along with being one of the safest metro areas to live in, Wausau is also one of the most promising for job prospects. It’s low unemployment rate puts it in the top 5% of the country.

For more information, check out homes for sale in Wausau, Wisconsin and Wausau, Wisconsin, housing market trends.

2. Lafayette, Indiana

• Metro population: 224,737
• Median home price: $240,078
• Estimated monthly mortgage payment: $1,347

Lafayette residents with a household income of $65,000, land well above the area’s median household income of $54,490. The extra wiggle room in their budget can allow for enjoying the splendors of the city, like antique shops, festivals, local breweries or the state’s oldest drive-in restaurant. The city is also home to Purdue University, which hosts several events and Big 10 athletic games.

For more information, check out homes for sale in Lafayette, Indiana and Lafayette, Indiana, housing market trends.

3. Columbia, Missouri

• Metro population: 180,643
• Median home price: $274,592
• Estimated monthly mortgage payment: $1,603

Named a top college town by the American Institute for Economic Research, Columbia is home to the University of Missouri and nationally recognized public schools. The educational opportunities offered by the city are just one of the factors that put it in the top 15% of the country for healthy residents. Other factors include its low unemployment rate, access to healthcare and community offerings, like 42 parks and recreation facilities, nature trails and year-round cultural events.

For more information, check out homes for sale in Columbia, Missouri and Columbia, Missouri, housing market trends.

4. Grand Forks, North Dakota

• Metro population: 100,815
• Median home price: $255,143
• Estimated monthly mortgage payment: $1,531

Grand Forks is located along the Red River, right on the border between North Dakota and Minnesota, and is home to the University of North Dakota, one of the city’s largest employers. There are several others that contribute to the area’s thriving economy, too, including the Grand Forks Air Force Base and the Altru Health System. The area has a thriving economy, ranking in the top 1% of the country for its low employment rate, which sits at about 1.8%. Young professionals should especially take notice, as Niche named the area one of the top three best counties for young professionals in North Dakota.

For more information, check out homes for sale in Grand Forks, North Dakota.

5. Morgantown, West Virginia

• Metro population: 139,044
• Median home price: $212,961
• Estimated monthly mortgage payment: $1,162

Morgantown residents pay less in property taxes than 94% of the country – spending about $1,023 on average. Despite paying less, inhabitants are still treated to several amenities, including recreational trails, a lively downtown, public transportation and more than 15 parks and dog parks. Those may be just a few reasons Morgantown is one of the most popular places to live in West Virginia.

For more information, check out homes for sale in Morgantown, West Virginia and Morgantown, West Virginia, housing market trends.

6. Bangor, Maine

• Metro population: 152,148
• Median home price: $244,145
• Estimated monthly mortgage payment: $1,525

Sales tax is the same percentage no matter one’s income. That means those with lower salaries are more affected by it because they spend a greater share of their income on it. With a lower sales tax than 92% of the country, Bangor helps residents in middle- to lower-incomes stretch their dollars a little further. In addition, Bangor’s overall cost of living is about 16% lower than the national average, so residents on a $65,000 may be able to have a little more wiggle room in their budgets.

For more information, check out homes for sale in Bangor, Maine.

7. Pittsburgh, Pennsylvania

• Metro population: 2,317,600
• Median home price: $208,446
• Estimated monthly mortgage payment: $1,330

The City of Bridges surrounds the point where the Ohio River, Allegheny River and Monongahela River converge, providing ample opportunity for water recreation and enjoyment. That includes fishing, kayaking, rowing and boating. From recreation to culture, cuisine and opportunity, Pittsburgh has several features that put it in the top 20% of the country for good health. Residents can also improve their quality of life by finding their niche in one of the city’s 90 neighborhoods or taking in a panoramic view of the city from the famous Duquesne Incline, one of USA Today’s “most beautiful views in America.”

For more information, check out homes for sale in Pittsburgh, Pennsylvania and Pittsburgh, Pennsylvania, housing market trends.

8. Chambersburg, Pennsylvania

• Metro population: 155,027
• Median home price: $252,282
• Estimated monthly mortgage payment: $1,537

A location involved in major events in American history, Chambersburg was a stop on the underground railroad, a staging area for John Brown’s raid on Harper’s Ferry and a victim of the Civil War, when confederate troops burned the center of town to the ground. Having rebuilt, Chambersburg’s present and future are bright. The city has a charming downtown filled with local eateries, boutique shops and Victorian architecture. All the city’s amenities can be enjoyed with ease as it ranks in the top 10% of the country for low crime.

For more information, check out homes for sale in Chambersburg, Pennsylvania and Chambersburg, Pennsylvania, housing market trends.

9. Syracuse, New York

• Metro population: 648,593
• Median home price: $204,402
• Estimated monthly mortgage payment: $1,501

With year-round events, activities and amenities, Syracuse residents never run out of things to do. It may be one reason the health of Syracuse inhabitants is better than more than 75% of the country. Locals have a bevy of places to go, foods to try and culture to absorb, from bacon and crawfish festivals and Pride parades to the New York State fair and all the magic that turns the city into one of the best places to experience a winter wonderland.

For more information, check out homes for sale in Syracuse, New York and Syracuse, New York, housing market trends.

10. Lansing, Michigan

• Metro population: 482,269
• Median home price: $222,711
• Estimated monthly mortgage payment: $1,441 

Michigan’s capital city has a cost of living that’s 21.4% lower than the national average, making it an affordable place to live. Along with being friendly to budgets, Lansing is also friendly to its residents and visitors alike, priding itself on being a welcoming and inclusive community. One way it achieves this is by creating sensory-friendly events, attractions, programs and shows for neurodiverse people and families.

For more information, check out homes for sale in Lansing, Michigan and Lansing, Michigan, housing market trends.

Bottom Line: Midwest May Be Best For Affordability

The top three cities on this list are in the Midwest, which may be unsurprising given this particular region is known for lower cost of living and relatively affordable real estate. Its affordability also makes it one of the best places to live while saving for a home. Much of the Midwest also has a relatively low risk for experiencing a devastating natural disaster (also known as the climate hazard risk index). Due to its geographical location and/or topography, the region has low or non-applicable risk for such hazards as avalanches, coastal flooding, hurricanes, earthquakes and wildfire.

Methodology: Finding The Best Cities To Buy A Home On $65,000 A Year

In this study, we present the best places to live which are affordable at a household income of $65,000 – just below the median household income for Americans in 2021, which was $70,784 – according to the most recent data from the U.S. Census Bureau as of January 12, 2023.

The places analyzed in our study are all the major metropolitan areas in the United States, 383 in total. These metro areas are home to over 80% of all U.S. residents.

The team at BestPlaces.net collected and analyzed data in key measures which give insights into the home affordability for each metro, as well as livability indicators such as health, economy, taxes and crime. We chose metrics which are as current as possible and as detailed as possible to provide the most relevant insight.

Each data metric is normalized and transformed to a common range of 0-100 points for scoring and comparison.  Weights are applied to each metric which reflects its importance in the study. The weighted scores for each metric are summed to create the overall “Best Cities To Buy A Home On $65,000 A Year” score for each place.  The final scores are sorted to produce the final rankings.

Other statistics and sources were used in this study but not weighted for ranking, These include:

To understand the maximum monthly mortgage payment for a household income of $65,000, we used the following equation: (65,000/12) x 0.3

To calculate the estimated monthly mortgage payment for each city, we used the median home price for each city and based the estimate on a fixed-rate, 30-year mortgage loan with a 6.5% interest rate and 20% down payment. The average property tax for each area was included in the calculation. Homeowners insurance was not included in the calculation as the cost can vary greatly by home and plan. A 20% down payment was used to avoid private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan. Borrowers cannot avoid the funding fee for a VA loan by making a down payment.

It is important to note that the homebuyer’s specific monthly mortgage payment and other housing expenses will be based on their own situation, including but not limited to their credit score, debt-to-income ratio (DTI), down payment, loan term, loan type, lender, purchase price, mortgage points, current mortgage interest rates, closing costs, homeowners association (HOA) fees, specific property taxes and homeowners insurance. Affordability is also based on their individual monthly debts, which may include student loan payments, car loans, credit card debt and other monthly housing costs and subscriptions. Individuals should see what they can afford based on their specific situation by speaking to a REALTOR^®, Home Loan Expert or personal finance advisor, or by using a mortgage calculator.