20 Best Hidden Gem Midwest Housing Markets of 2025

Many Americans who dream of becoming homeowners head to the Midwest to find a home, thanks to the region’s overall affordability compared to coastal states with a high cost of living. 

For buyers seeking the best-kept secret housing markets, GOBankingRates has identified at least 20 in the Midwest considered hidden gems. This in-house research was compiled after analyzing data from Zillow, AreaVibes, Sperling’s BestPlaces, the Bureau of Labor Statistics and the Federal Reserve. Each city was weighted based on ranking in various categories, including livability index and median household income, to determine the scores that show the nation’s best hidden gem housing markets of 2025.

Take a look at the 20 best hidden housing markets in the Midwest.

• Median household income: $61,877
• Average monthly mortgage: $1,368
• Livability: 90
• Average home value in city: $238,916
• Average home value in state: $335,546

• Median household income: $67,846
• Average monthly mortgage: $1,093
• Livability: 88
• Average home value in city: $190,919
• Average home value in state: $259,881

• Median household income: $47,827
• Average monthly mortgage: $836
• Livability: 87
• Average home value in city: $145,974
• Average home value in state: $247,160

• Median household income: $78,782
• Average monthly mortgage: $1,064
• Livability: 87
• Average home value in city: $185,896
• Average home value in state: $247,160

• Median household income: $63,415
• Average monthly mortgage: $1,291
• Livability: 85
• Average home value in city: $225,498
• Average home value in state: $335,546

• Median household income: $34,746
• Average monthly mortgage: $388
• Livability: 81
• Average home value in city: $67,778
• Average home value in state: $247,160

• Median household income: $64,635
• Average monthly mortgage: $1,134
• Livability: 85
• Average home value in city: $198,067
• Average home value in state: $259,881

• Median household income: $50,865
• Average monthly mortgage: $1,165
• Livability: 82
• Average home value in city: $203,553
• Average home value in state: $358,740

• Median household income: $46,395
• Average monthly mortgage: $877
• Livability: 83
• Average home value in city: $153,235
• Average home value in state: $255,693

• Median household income: $65,537
• Average monthly mortgage: $951
• Livability: 81
• Average home value in city: $166,171
• Average home value in state: $293,121

• Median household income: $66,488
• Average monthly mortgage: $1,071
• Livability: 79
• Average home value in city: $187,037
• Average home value in state: $358,740

• Median household income: $64,636
• Average monthly mortgage: $1,394
• Livability: 82
• Average home value in city: $243,488
• Average home value in state: $358,740

• Median household income: $63,984
• Average monthly mortgage: $1,410
• Livability: 82
• Average home value in city: $246,336
• Average home value in state: $358,740

• Median household income: $56,218
• Average monthly mortgage: $1,594
• Livability: 85
• Average home value in city: $278,550
• Average home value in state: $335,546

• Median household income: $58,371
• Average monthly mortgage: $999
• Livability: 81
• Average home value in city: $174,547
• Average home value in state: $293,121

• Median household income: $74,138
• Average monthly mortgage: $1,118
• Livability: 83
• Average home value in city: $195,251
• Average home value in state: $247,160

• Median household income: $61,929
• Average monthly mortgage: $1,439
• Livability: 83
• Average home value in city: $251,327
• Average home value in state: $335,546

• Median household income: $57,183
• Average monthly mortgage: $886
• Livability: 81
• Average home value in city: $154,786
• Average home value in state: $259,881

• Median household income: $48,544
• Average monthly mortgage: $788
• Livability: 81
• Average home value in city: $137,672
• Average home value in state: $247,160

• Median household income: $55,700
• Average monthly mortgage: $1,056
• Livability: 83
• Average home value in city: $184,495
• Average home value in state: $247,160

Check out more original studies and surveys in the GOBankingRates original research center.

Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.

Methodology: GOBankingRates used data from Zillow Home Value Index to find cities with an average single-family home value $50,000 below the statewide average home value. The livability index was sourced from AreaVibes and all cities with a livability below 70 were removed as they represent a lower quality of life. The cost-of-living indexes were sourced from Sperling’s BestPlaces and using the national average expenditure costs as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure costs were calculated for each city. Assuming a 10% down payment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage was calculated for each city. Using the average mortgage and expenditure costs, the total cost of living was calculated for each city. The median household income was scored and weighted at 1.00, the average mortgage cost was scored and weighted at 1.00, the difference from a statewide home value was scored and sourced from 2.00, and the livability index was scored and sourced at 2.00. All the scores were summed and sorted to show the best hidden gem housing markets of 2025. All data is current as of Sept. 2, 2025.