Top 20 Cheapest ZIP Codes In The US (2024)
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| Top 20 Cheapest ZIP Codes In The US |
According to a new survey, the lowest rents in the United States are found in some of the Midwest's major cities.
"The Midwest is more cheap because the cost of living is lower in these regions. Cities in the Midwest are often less expensive," said Brian Carberry, author of the Apartment Guide research, which looked at apartment buildings with more than 50 units advertised on its website and Rent.com.
The cost of living in the neighborhoods on the list is quite low. According to the Council for Community and Economic Research, Columbus, Ohio has a 10% lower cost of living than the national average. According to Apartment Guide, Columbus' ZIP code (43227) has the lowest rent, with one-bedrooms starting at $489 per month.
Read more: Top 30 Most Expensive ZIP Codes In The US
Top 20 Cheapest ZIP Codes In The US
1.ZIP code: 21223
Location: Baltimore, MD
Baltimore, Columbia, and Towson, Maryland
The median property sales price is $26,000.
Median household income is $28,549.
Homes over 50 years old: 86.1%
The 21223 ZIP code in Baltimore, located just west of the city's Inner Harbor region, has the lowest cost of housing of any postal code with a sufficient sample size in the United States. The majority of the 556 properties bought and sold in the area in 2020 sold for $26,000 or less, which is less than the local median household income of $28,549. For comparison, the national median home sale price is 4.2 times more than the national median household income of $62,843.
2.ZIP: 95969
Location: Paradise, California.
Chico, California is a metropolitan region.
The median property sales price is $30,000.
The median household income is $51,625.
Homes over 50 years old: 37.2%.
3. ZIP 95969
Location: Detroit, Michigan
Metro Area: Detroit-Warren-Dearborn, MI
The median home sales price is $34,500.
Median household income is $27,337.
Homes over 50 years old: 87.6%
California’s 95969 ZIP code, located just east of Chico and encompassing the town of Paradise, has some of the least expensive homes in the United States. The typical area home sold for just $30,000 in 2020 — well below the local median household income of $51,625. For context, the median home sale price nationwide is 4.2 times higher than the national median household income of $62,843.
4. ZIP: 48228
Location: Detroit, Michigan
Metro area: Detroit-Warren-Dearborn, MI
Median home sales price: $34,500
Median household income: $27,337
The 48228 ZIP code in western Detroit contains some of the least priced properties in the United States. The typical area home sold in 2020 for $34,500.
Home values are frequently a reflection of what inhabitants can afford in the neighborhood, and salaries are similarly low. The typical household in the 48228 ZIP code makes only $27,337 per year, compared to the national median income of $62,843. The local job market has an impact on both income and housing values. Over the last five years, 19.0% of local workers were unemployed, more than double the equivalent national unemployment rate of 5.3%.
5. ZIP code: 21217
Location: Baltimore, MD
Baltimore, Columbia, and Towson, Maryland
The median home sales price is $35,000.
Median household income is $29,196.
Homes over 50 years old: 86.4%
Baltimore's 21217 ZIP code is one of only five postal codes in the country with a sufficient sample size, with the majority of residences sold in 2020 priced under $40,000. The median price of the 500 local dwelling units sold last year was under $35,000. The area's property prices are among the lowest in the country, most likely due to decreasing demand caused by population loss. Over the last five years, the population in the area has decreased by 16.8%.
6. ZIP Code: 63136
Location: Saint Louis, Missouri
Metro Area: St. Louis, MO-IL.
The median property sales price is $37,000.
Median household income is $32,223.
Homes over 50 years old: 78.6%
Some of the least costly — and most affordable — real estate being offered in the United States is in St. Louis' 63136 ZIP code, which encompasses a portion of the city's northernmost region. The median home sale price in the area was $37,000 last year, somewhat higher than the local median household income of $32,223. For comparison, the national median home sale price is 4.2 times more than the national median household income of $62,843.
7. Zip code: 48227
Location: Detroit, Michigan
Metro Area: Detroit-Warren-Dearborn, MI
The median home sales price is $44,850.
Median household income is $29,197.
Homes over 50 years old: 94.0%
Detroit's economic fortunes have declined in tandem with the American manufacturing sector, as evidenced by the 48227 ZIP code. The 48227 ZIP code, located northwest of downtown Detroit, had a median home sale price of $44,850 last year, which was a fraction of the national median.
8. ZIP Code: 21216
Location: Baltimore, MD
Baltimore, Columbia, and Towson, Maryland
The median home sales price is $45,000.
Median household income is $40,178.
Homes over 50 years old: 89.9%
The 21216 ZIP code, located northwest of Baltimore's Inner Harbor, features some of the least costly and most cheap housing in the United States. Last year, the median home sale price in the area was only $45,000, or 1.1 times the local median household income of $40,178. For comparison, the national median home sale price is 4.2 times more than the national median household income of $62,843.
9. ZIP code: 21213
Location: Baltimore, MD
Baltimore, Columbia, and Towson, Maryland
The median home sales price is $45,000.
Median household income is $39,648.
Homes over 50 years old: 91.3%
Some of the least costly real estate being offered in the United States is in Baltimore's 21213 ZIP code, which is immediately northeast of the city's Inner Harbor. The median price of the almost 600 area housing units sold last year was $45,000, which is less than one-fifth of the national median home sale price for 2020.
10. ZIP code: 48224
Location: Detroit, MI
Metro Area: Detroit-Warren-Dearborn, MI
The median home sales price is $45,000.
The median household income is $35,429.
Homes over 50 years old: 91.8%
Detroit's 48224 postal code is one of several in the greater metro area that has reported some of the lowest-priced house selling agreements in the recent year. In 2020, 771 area properties sold, with a median transaction price of $45,000. Home prices in the area are anticipated to be among the lowest, owing to lower demand caused by population decline. Over the last five years, the population in the area has decreased by 7.6%.
11. Zip code 38127
Location: Memphis, Tennessee
Metro area: Memphis, Tennessee, Mississippi, and Arkansas
The median home sales price is $45,000.
Median household income is $29,798.
Homes over 50 years old: 62.8%
The 38127 ZIP code in Memphis, Tennessee, is one of several in the greater Memphis metro area that has reported some of the lowest-priced house sale agreements in the past year. In 2020, 871 area residences were purchased and sold, with a median sales price of $45,000.
12. ZIP: 19140-Philadelphia, Pennsylvania
13. ZIP: 46218-Indianapolis, Indiana
14. ZIP: 38109-Memphis, Tennessee
15. ZIP: 47302-Muncie, Indiana
16. ZIP: 21215-Baltimore, Maryland
17. ZIP: 43211-Columbus, Ohio
18. ZIP: 47374-Richmond, Indiana
19. ZIP: 19134-Philadelphia, Pennsylvania
20. ZIP: 48089-Warren, Michigan
| Flint, Michigan's ZIP code is the most affordable place in the US for locals to buy property. In the Flint, Michigan, ZIP code 48505, the median price of a home ($27,703) is less than what a typical local worker earns a year ($29,061), resulting in a home price-to-household income ratio of 0.95. This wins the ZIP code the distinction of being the most cheapest in the country for locals to purchase a home. The city's population has decreased as a result of a crisis in which the local water supply was poisoned with lead and dangerous microorganisms, reducing demand for houses. Following that, the ranking is primarily made up of ZIP codes from America's Rustbelt, an area that struggled economically as heavy industry declined. Population has also fallen, but in recent years, millennials have flocked to Rustbelt communities due to lower housing costs. |
Important Budgeting Tips for First-Time Home Buyers
In an era of increasing house prices and interest rates, it's no surprise that the proportion of first-time home buyers in the United States fell to a record low in 2022. But don't give up if you're in the market for your first home; follow our crucial suggestions to budget like an expert.
1. Determine what you can afford.
Take a look at your monthly gross income. A reasonable rule of thumb is to look for a property that will not force you to spend more than 28% of your monthly gross income on mortgage payments. Keep in mind any debt, such as college loans.
Mortgage lenders will assess your debt-to-income ratio when deciding whether to issue you a loan. According to an article on Investopedia: "Ideally, lenders prefer a debt-to-income ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment."
2. Visualize your existing expenses.
Free online budget templates are an excellent tool to determine how much and on what you spend each month. Not only does this help you determine how much of your income should be set aside for necessities (such as bills), but after you've visualized where your money is going, you can discover which expenses you may cut to optimize your savings for a deposit.
You don't have to give up everything you love spending your hard-earned money on, but there may be one or two luxuries you can go without for the time being. Check your bank statements; you could be one of the 42% of Americans who continue to pay for a subscription they no longer use.
3. Research government-backed projects.
First-time purchasers wishing to make the most of a lower budget may check into government-backed financing programs or incentives. For example, one Federal Housing Administration (FHA) program enables first-time buyers to purchase a home with only a 3.5% down payment. For further details, see Investopedia's first-time buyer incentive breakdown.
Once you've taken the plunge and received the keys to your first home (phew!), one last thing to remember is to ensure that your home is properly insured and covered by a home guarantee that protects all of your important systems and appliances from unexpected breakdown.
Conclusion
While some zip codes may only be accessible to high-net-worth persons with a large income or substantial assets, there are still many zip codes that are more reasonable for the average renter or home buyer.The most affordable ZIP code in the country for residents to purchase a home is 48505 in Flint, Michigan. The median home price is 0.95 times the median annual earnings for a local worker.
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