10 Cities Where Your Mortgage Payment is Less Than $500

There are still ultra-affordable homes in the U.S. if you know where to look.

In some cities, your mortgage payment might be less than $500 per month based on recent data.

Though you may not have heard of them all, each city offers unique opportunities to its residents for employment, culture, and ultra-affordable living.

Ten cities where your mortgage payment might be less than $500 are:

10. Gary, Indiana: $494
9. Blytheville, Arkansas: $478
8. Greenville, Mississippi: $454
7. Danville, Illinois: $443
6. Detroit, Michigan: $440
5. Jackson, Mississippi: $390
4. Flint, Michigan: $382
3. Youngstown, Ohio: $363
2. Prichard, Alabama: $299
1. Clarksdale, Mississippi: $286

10. Gary, Indiana: $494

Gary, Indiana is not only affordable but has a rich history in the steel industry and jazz music. It’s also known as the birthplace of Michael Jackson. Gary offers plenty of employment and entertainment opportunities for residents.

9. Blytheville, Arkansas: $478

Along the famous Great River Road that stretches along the Mississippi river, Blytheville has its roots in the steel industry and cotton farming. As in many industrial towns, housing is affordable even for middle-income workers.

8. Greenville, Mississippi: $454

Greenville, Mississippi, boasts a diverse real estate landscape, offering historic homes along the Mississippi River, antebellum charm in the Broadway Historic District, and modern developments. The city's affordability and rich cultural heritage make it an attractive destination for those seeking unique properties and a welcoming community.

7. Danville, Illinois: $443

Danville, Illinois, features a real estate market with a mix of architectural styles, from Victorian homes in the Ellsworth Historic District to contemporary options. Affordability is a key draw, and the city's proximity to parks, amenities, and the scenic Vermilion River adds to its appeal for those seeking diverse housing opportunities.

6. Detroit, Michigan: $440

One of the larger cities on the list is Detroit, Michigan. A leader in the auto industry, the city is also experiencing a resurgence and diversification of employment opportunities.

5. Jackson, Mississippi: $390

Jackson, Mississippi holds rich cultural depth, known as the birthplace of the blues. Home to the Mississippi Museum of Art and the historic Fondren district, it blends history with creativity. Jackson embraces a diverse culinary scene, making it an attractive Southern destination for visitors and homeowners alike.

4. Flint, Michigan: $382

The birthplace of General Motors, Flint is known as Vehicle City. It’s rising as a destination for festivals and the arts with evens such as Alley Fest, the Flint Jazz Festival, 80s in the Hole, and Flint Drop Fest according to the city’s official website.

3. Youngstown, Ohio: $363

With theaters, galleries, and the Youngstown Historical Center of Industry and Labor, Youngstown is a city where rich history is on display. Just an hour southeast of Cleveland, this town blends affordability with access to a major city.

2. Prichard, Alabama: $299

With a population of around 20,000 today, Prichard remains a popular town for those working in Mobile, as it was during and after World War II. With ultra-affordable home prices and nearby employment, Prichard can be a fantastic alternative to more expensive locales.

1. Clarksdale, Mississippi: $286

With a vibrant blues scene, Clarksdale is a must-visit location for Memphis tourists. It offers outdoor activities like canoeing on the Mississippi River and shopping opportunities as well. And with an estimated mortgage payment of $286 per month, you’ll have plenty of money left over each month to take advantage of all the area has to offer.

Methodology

To arrive at an estimated monthly mortgage payment, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage using a 6.845% rate, the average rate published on the Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs for this scenario per rates from mortgage insurance provider MGIC. The stated mortgage payment did not include homeowner’s insurance, property taxes, or HOA dues.