You Can Afford a Mortgage in These 13 Cities on Just $40K
Every income feels modest when you stack it up against your increasingly spicy monthly utility bills and cost of living. Plus, if you are making below $63,795, which is the national average, you have probably dismissed the possibility of owning a home.
However, earning just $40,000 a year could still help you dip your toe in the real estate markets of some overlooked areas that provide low housing costs, steady job opportunities and a more achievable prospect of home ownership.
Whether you're a first‑time buyer, someone looking to relocate or simply trying to stretch your small stack of dollars further, these 13 affordable cities stand out for offering cheap housing markets, reasonable mortgage rates and home prices that won’t overwhelm your monthly income.
Here are some of the best places you should consider when property hunting, where you can buy a home with a salary below or around $40,000 a year.
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1. Detroit
Average home value: $74,604
Savings needed for a 20% down payment: $14,921
Annual mortgage with 20% down payment: $4,363
Salary needed to afford a mortgage with 20% down payment: $14,544
Savings needed for a 6% down payment: $4,476
Annual mortgage with 6% down payment: $5,127
Salary needed to afford a mortgage with 6% down payment: $17,090
2. Cleveland
Average home value: $112,206
Savings needed for a 20% down payment: $22,441
Annual mortgage with 20% down payment: $6,562
Salary needed to afford a mortgage with 20% down payment: $21,875
Savings needed for a 6% down payment: $6,732
Annual mortgage with 6% down payment: $7,711
Salary needed to afford a mortgage with 6% down payment: $25,703
3. Toledo, Ohio
Average home value: $122,284
Savings needed for a 20% down payment: $24,457
Annual mortgage with 20% down payment: $7,152
Salary needed to afford a mortgage with 20% down payment: $23,840
Savings needed for a 6% down payment: $7,337
Annual mortgage with 6% down payment: $8,403
Salary needed to afford a mortgage with 6% down payment: $28,012
4. Birmingham, Alabama
Average home value: $127,882
Savings needed for a 20% down payment: $25,576
Annual mortgage with 20% down payment: $7,479
Salary needed to afford a mortgage with 20% down payment: $24,931
Savings needed for a 6% down payment: $7,673
Annual mortgage with 6% down payment: $8,788
Salary needed to afford a mortgage with 6% down payment: $29,294
5. Akron, Ohio
Average home value: $132,203
Savings needed for a 20% down payment: $26,441
Annual mortgage with 20% down payment: $7,732
Salary needed to afford a mortgage with 20% down payment: $25,773
Savings needed for a 6% down payment: $7,932
Annual mortgage with 6% down payment: $9,085
Salary needed to afford a mortgage with 6% down payment: $30,284
6. Memphis, Tennessee
Average home value: $144,524
Savings needed for a 20% down payment: $28,905
Annual mortgage with 20% down payment: $8,453
Salary needed to afford a mortgage with 20% down payment: $28,175
Savings needed for a 6% down payment: $8,671
Annual mortgage with 6% down payment: $9,932
Salary needed to afford a mortgage with 6% down payment: $33,106
7. St. Louis
Average home value: $179,252
Savings needed for a 20% down payment: $35,850
Annual mortgage with 20% down payment: $10,484
Salary needed to afford a mortgage with 20% down payment: $34,946
Savings needed for a 6% down payment: $10,755
Annual mortgage with 6% down payment: $12,318
Salary needed to afford a mortgage with 6% down payment: $41,061
8. Baltimore
Average home value: $185,318
Savings needed for a 20% down payment: $37,064
Annual mortgage with 20% down payment: $10,839
Salary needed to afford a mortgage with 20% down payment: $36,128
Savings needed for a 6% down payment: $11,119
Annual mortgage with 6% down payment: $12,735
Salary needed to afford a mortgage with 6% down payment: $42,451
9. Wichita, Kansas
Average home value: $196,304
Savings needed for a 20% down payment: $39,261
Annual mortgage with 20% down payment: $11,481
Salary needed to afford a mortgage with 20% down payment: $38,270
Savings needed for a 6% down payment: $11,778
Annual mortgage with 6% down payment: $13,490
Salary needed to afford a mortgage with 6% down payment: $44,967
10. Mobile, Alabama
Average home value: $196,541
Savings needed for a 20% down payment: $39,308
Annual mortgage with 20% down payment: $11,495
Salary needed to afford a mortgage with 20% down payment: $38,316
Savings needed for a 6% down payment: $11,792
Annual mortgage with 6% down payment: $13,507
Salary needed to afford a mortgage with 6% down payment: $45,022
11. Amarillo, Texas
Average home value: $199,398
Savings needed for a 20% down payment: $39,880
Annual mortgage with 20% down payment: $11,662
Salary needed to afford a mortgage with 20% down payment: $38,873
Savings needed for a 6% down payment: $11,964
Annual mortgage with 6% down payment: $13,703
Salary needed to afford a mortgage with 6% down payment: $45,676
12. Des Moines, Iowa
Average home value: $204,520
Savings needed for a 20% down payment: $40,904
Annual mortgage with 20% down payment: $11,962
Salary needed to afford a mortgage with 20% down payment: $39,872
Savings needed for a 6% down payment: $12,271
Annual mortgage with 6% down payment: $14,055
Salary needed to afford a mortgage with 6% down payment: $46,849
13. Oklahoma City
Average home value: $205,924
Savings needed for a 20% down payment: $41,185
Annual mortgage with 20% down payment: $12,044
Salary needed to afford a mortgage with 20% down payment: $40,146
Savings needed for a 6% down payment: $12,355
Annual mortgage with 6% down payment: $14,151
Salary needed to afford a mortgage with 6% down payment: $47,171
Methodology: For this piece, MoneyLion examined the 50 largest housing markets with 2025 typical home values below $300,000, sourced from November 2025 Zillow data. MoneyLion deemed this “affordable” because the national average is $361,045; thus, $300,000 and below is well below the national average (15%+). With these cities isolated MoneyLion 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 towards housing. For all mortgage calculations, MoneyLion assumed a 30-year fixed rate at 6.15 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 Jan. 6, 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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