The 5 States Where You Can Buy a Home for Under $260K
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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No matter how much you pay for a home, it will likely be one of the biggest purchases of your life. However, price is relative, as home values increase year by year, and in some markets, significantly more than others.
To buy a home under $300,000, much less for around $260,000 now is like finding a unicorn in many states. The last time U.S. homes were abundantly in the $260,000 range or lower was the early 2000s, according to previous GOBankingrates research.
However, according to a new study by Seven Seas Worldwide, which analyzed the affordability of homes in all 50 states, there are five states where the median home price is under $260,000.
Arkansas
Arkansas is one of the most attainable housing markets in the country, with a median home price of roughly $255,300. Even for those not ready to buy, lower rents make it easier to build savings toward a down payment. While utility costs are closer to the national average, Arkansas keeps overall expenses in check through low vehicle registration fees and relatively affordable moving costs. Those factors, combined with fewer pricing pressures than in faster-growing states, help keep home prices within reach.
Mississippi
Mississippi is another standout for low housing costs, with a median home price just over $255,000. Rents are also manageable here compared to national averages. Combined with a historically low cost of living, Mississippi remains one of the most budget-friendly states for homeownership, especially for buyers who prioritize affordability over access to large metropolitan areas.
Louisiana
Louisiana takes home prices down even lower, to $253,200, keeping it firmly under the $260,000 mark. The state also benefits from relatively low utility costs and reasonable rents, helping offset other living expenses. More modest population growth and steadier housing supply have helped limit price increases, making conditions more favorable for both buyers and long-term renters.
Oklahoma
Oklahoma, “the Sooner State,” might draw more people sooner after reading this too. It combines the second-lowest median home price on the list, about $245,900, with the lowest average rent in the country. That combination makes it especially attractive to renters planning to become buyers. Oklahoma’s overall cost of living remains among the lowest nationally, supported in part by regular housing development that has helped avoid the rapid price jumps seen in faster-growing markets.
Iowa
Iowa offers the lowest median home price of any state in the study, at approximately $230,600. That price point makes homeownership feel much more in reach for buyers who have been priced out elsewhere. And rents are also comparatively low. While utility costs run slightly higher than in some neighboring states, Iowa’s housing affordability makes a big difference in tight budgets. Stable economic conditions and relatively inexpensive land continue to support a housing market that favors buyers.
Despite these great prices, housing affordability still varies widely across the U.S. While many coastal markets are still seeing homes selling for above a half-million dollars, large parts of the South and Midwest remain accessible for buyers willing to prioritize cost over geography.
For Americans planning a move in 2026, these markets offer breathing room in monthly budgets, lower upfront costs and a realistic path to ownership.
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