7 Housing Markets Where You Will Need Less Than $30K Saved To Buy a Home

One of the most frequently cited rules of thumb for buying a house is to put down 20% or more of the price. A 20% down payment ensures buyers do not need to pay additional monthly PMI (private mortgage insurance) fees. While it can be difficult to build up these savings, the good news is there are seven housing markets in the United States where a 20% down payment equates to saving $30,000 or less.

GOBankingRates was able to determine the most affordable housing markets by searching the 50 largest markets with 2024 typical home values below $300,000. We then calculated the savings needed for various down payment percentages, including 20%, and isolated seven markets where $30,000 or less in savings would suffice for 20% down.

In order from most to least savings, keep reading to see which seven housing markets need $30,000 or less saved for a home’s down payment.

• 2024 typical home value: $147,405
• Savings needed for 20% down payment: $29,481
• Annual mortgage with 20% down payment: $8,916

• 2024 typical home value: $142,820
• Savings needed for 20% down payment: $28,564
• Annual mortgage with 20% down payment: $8,639

• 2024 typical home value: $130,801
• Savings needed for 20% down payment: $26,160
• Annual mortgage with 20% down payment: $7,912

• 2024 typical home value: $124,586
• Savings needed for 20% down payment: $24,917
• Annual mortgage with 20% down payment: $7,536

• 2024 typical home value: $119,690
• Savings needed for 20% down payment: $23,938
• Annual mortgage with 20% down payment: $7,240

• 2024 typical home value: $107,935
• Savings needed for 20% down payment: $21,587
• Annual mortgage with 20% down payment: $6,529

• 2024 typical home value: $70,997
• Savings needed for 20% down payment: $14,199
• Annual mortgage with 20% down payment: $4,295

Methodology: For this piece GOBankingRates looked at the 50 largest housing markets with 2024 typical home values below $300,000, as sourced from July 2024 Zillow data. GOBankingRates deemed this “affordable” as the national average is $361,433, thus $300,000 and below is well below the national average (15%+). With these cities isolated, GOBankingRates found the following: (1) savings needed for a down payment at 20%, 15%, 10% and 6%; (2) annual mortgage cost at 20%, 15%, 10% and 6% respectively; and (3) salary needed to afford mortgage at 20%, 15%, 10% and 6%, assuming that no more than 30% of pre-tax income should be put toward housing. For all mortgage calculations, GOBankingRates assumed a 30-year fixed rate at 6.47% as sourced from Freddie Mac, with no P+I, property tax or HOA fees. All data was collected on and is up to date as of Aug. 13, 2024.