7 Cities Where You Need Less Than $10K Saved for a 6% Down Payment

Ever since the pandemic, housing prices and mortgage rates have both boomed. The combination has kept the housing market at near-record levels of unaffordability in 2024.

Nationwide, the median existing home price was $422,600 as of July 2024, a 4.2% increase from the year prior. Although the Fed has recently begun cutting interest rates, that may actually help propel prices higher, potentially negating any savings from reduced mortgage rates.

While this may be dispiriting news for potential homebuyers, there are rays of light scattered across the country. While high prices garner all the headlines, there are actually seven well-known cities in America where you need less than $10,000 saved to cover a 6% down payment. Here they are, in order from most to least affordable.

Also see how much the typical homebuyer’s down payment is in 2024.

• Savings needed for a 6% down payment: $6,476
• Annual mortgage with a 6% down payment: $7,671
• Salary needed to afford a mortgage with a 6% down payment: $25,572

Cleveland is the home to the Rock & Roll Hall of Fame, the Pro Football Hall of Fame and extremely affordable housing. A 10% down payment would require just $10,794.

• Savings needed for a 6% down payment: $7,181
• Annual mortgage with a 6% down payment: $8,507
• Salary needed to afford a mortgage with a 6% down payment: $28,357

The average home price in Toledo comes in at a scant $119,690, meaning homes are affordable even with a 6% down payment. With a “full” down payment of 20%, the monthly mortgage cost would be just $603.

• Savings needed for a 6% down payment: $7,475
• Annual mortgage with a 6% down payment: $8,855
• Salary needed to afford a mortgage with a 6% down payment: $29,516

Birmingham is one of two Southern cities on the list, representing another area of the country that is traditionally more affordable. After a 10% down payment of $12,459, residents earning just $28,260 could afford the annual mortgage of $8,478.

• Savings needed for a 6% down payment: $7,848
• Annual mortgage with a 6% down payment: $9,297
• Salary needed to afford a mortgage with a 6% down payment: $30,989

Home values in Akron average just $130,801, meaning a 10% down payment would cost you just $13,080. That translates to a monthly payment of just $742.

• Savings needed for a 6% down payment: $8,569
• Annual mortgage with a 6% down payment: $10,151
• Salary needed to afford a mortgage with a 6% down payment: $33,836

Dayton is the fourth city in Ohio making this list, showing just where the most affordable housing in America is concentrated. The city of 135,000 residents requires just a salary of just $28,797 to afford a home with a 20% down payment and a $720 monthly mortgage payment.

• Savings needed for a 6% down payment: $8,844
• Annual mortgage with a 6% down payment: $10,477
• Salary needed to afford a mortgage with a 6% down payment: $34,923

Memphis is the home of the blues and the birthplace of rock ‘n’ roll, and it’s also a great place to live if you’re looking for an affordable home. Housing in the city is 128% cheaper than the national average, according to Sperling’s BestPlaces.

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%-plus). 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 pretax 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 and is up to date as of August 13, 2024.