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10 metros where a home costs about $1,000/month

 

Cleveland

In the fourth quarter of 2016, there were no changes in ranking among the metropolitan areas that make up our 10 places you can own a home for about $1,000 per month. That said, even though the quarterly median price of homes declined or remained the same in nine of the 10 places (and rose by just a slight amount in the remaining market), the considerable lift in mortgage rates during the period meant that monthly costs crept higher.

Although smaller down payments mean higher loan amounts (and higher monthly costs) there are still six metropolitan markets in our group where homes can still be had for about $1,000 per month even with less money down.

Based off our 27-metro list, HSH.com identifies 10 metro areas where you can afford the base cost of owning a median-priced home – the principal, interest, taxes and insurance payments -- for only around $1,000 per month. In the commentary of each slide, we discuss how the monthly figures will change when a home buyer makes a 10 percent down payment instead of a 20 percent down payment. HINT: The monthly payments will increase substantially with 10 percent down (and would increase even more if you put 5 percent down).

Mortgage rate:  3.97 percent

  • Quarterly change: 0.48 percent

Home price:  $130,000

  • Quarterly change: -7.14 percent
  • Year-over-year change: +1.56 percent

Monthly payment:  $755.38

Salary:  $32,373.50

  • Quarterly change: $411.13
  • Year-over-year change: +3.98 percent

If home buyers in the Pittsburgh metro put 10 percent down instead of 20 percent, the required salary increases from $32,373.50 to $36,862.33, lifting the PITI  (and mortgage insurance) payment to $860.12 per month.

Mortgage rate:  3.97 percent

  • Quarterly change: 0.39 percent

Home price:  $131,000

  • Quarterly change: -5.69 percent
  • Year-over-year change: +7.55 percent

Monthly payment:  $788.19

Salary:  $33,779.45

  • Quarterly change: -$405.19
  • Year-over-year change: +3.86 percent

If home buyers in the Cleveland metro put 10 percent down instead of 20 percent, the required salary increases from $33,779.45 to $38,302.81,  lifting the PITI (and mortgage insurance) payment to $893.73 per month.

Mortgage rate:  3.97 percent

  • Quarterly change: 0.34 percent

Home price:  $151,200

  • Quarterly change: -3.69 percent
  • Year-over-year change: +10.69 percent

Monthly payment:  $852.14

Salary:  $36,520.35

  • Quarterly change: $403.04
  • Year-over-year change: +7.52 percent

If home buyers in the Cincinnati metro put 10 percent down instead of 20 percent, the required salary increases from $36,520.35 to $41,741.21, lifting the PITI (and mortgage insurance) payment to $973.96 per month.

Mortgage rate: 3.97 percent

  • Quarterly change: 0.44 percent

Home price: $160,800

  • Quarterly change: -5.41 percent
  • Year-over-year change: +6.07 percent

Monthly payment: $884.84

Salary: $37,921.76

  • Quarterly change: $395.21
  • Year-over-year change: +5.13 percent

If home buyers in the St Louis metro put 10 percent down instead of 20 percent, the required salary increases from $37,921.76 to $43,474.10, lifting the PITI (and mortgage insurance) payment to $1,014.40 per month.

Mortgage rate: 3.97 percent

  • Quarterly change: 0.36 percent

Home price: $164,650

  • Quarterly change: -3.61 percent
  • Year-over-year change: +10.75 percent

Monthly payment: $912.16

Salary: $39,092.52

  • Quarterly change: $59.11
  • Year-over-year change: +5.90 percent

If home buyers in the Detroit metro put 10 percent down instead of 20 percent, the required salary increases from $39,092.52 to $44,777.80, lifting the PITI (and mortgage insurance) payment to $1,044.82 per month

Mortgage rate: 3.97 percent

  • Quarterly change: 0.43 percent

Home price: $182,900

  • Quarterly change: -4.49 percent
  • Year-over-year change: +8.10 percent

Monthly payment: $923.44

Salary: $39,576.11

  • Quarterly change: $191.21
  • Year-over-year change: +5.39 percent

If home buyers in the Atlanta metro put 10 percent down instead of 20 percent, the required salary  increases from $39,576.11 to $45,891.55, lifting the PITI (and mortgage insurance) payment to $1,070.80 per month.

Mortgage rate: 3.97 percent

  • Quarterly change: 0.41 percent

Home price: $235,600

  • Quarterly change: 0.13 percent
  • Year-over-year change: +6.61 percent

Monthly payment: $1,071.33

Salary: $45,913.96

  • Quarterly change: $1,784.71
  • Year-over-year change: +4.50 percent

If home buyers in the Phoenix metro put 10 percent down instead of 20 percent, the required salary increases from $45,913.96 to $54,049.10, lifting the PITI (and mortgage insurance) payment to $1,261.15 per month.

Mortgage rate: 3.97 percent

  • Quarterly change: 0.31 percent

Home price: $205,000

  • Quarterly change: 0.00 percent
  • Year-over-year change: +14.85 percent

Monthly payment: $1,079.13

Salary: $46,248.32

  • Quarterly change: $1,351.04
  • Year-over-year change: +8.85 percent

If home buyers in the Tampa metro put 10 percent down instead of 20 percent, the required salary increases from $46,248.32 to $53,326.86, lifting the PITI (and mortgage insurance) payment to $1,244.49 per month.

Mortgage rate: 3.97 percent

  • Quarterly change: 0.43 percent

Home price: $206,300

  • Quarterly change: -2.83 percent
  • Year-over-year change: +7.39 percent

Monthly payment: $1,170.41

Salary: $50,160.34

  • Quarterly change: $1,819.41
  • Year-over-year change: +6.78 percent

If home buyers in the San Antonio metro put 10 percent down instead of 20 percent, the required salary increases from $50,160.34 to $57,283.77, lifting the PITI (and mortgage insurance) payment to $1,336.62 per month.

Mortgage rate: 3.97 percent

  • Quarterly change: 0.36 percent

Home price: $227,700

  • Quarterly change: -0.96 percent
  • Year-over-year change: +11.07 percent

Monthly payment: $1,187.01

Salary: $50,871.95

  • Quarterly change: $1,060.84
  • Year-over-year change: +6.40 percent

If home buyers in the Orlando metro put 10 percent down instead of 20 percent, the required salary increases from $50,871.95 to $58,734.31, lifting the PITI (and mortgage insurance) payment to $1,370.47 per month.

We used standard 28 percent "front-end" debt ratios and a 20 percent down payment subtracted from the median-home-price data to arrive at our figures. Loans with less than a 20 percent down payment will incur mortgage insurance, which would in turn increase costs. We utilized the NAR's 2016 second-quarter data for median home prices and HSH.com’s 2016 second-quarter average interest rate for a 30-year, fixed-rate mortgages.

We created metropolitan-area average property tax information using data made available from the Census Bureau's American Community Survey (ACS). We use 2011-2013 ACS three-year estimates, which are the latest available data. We used the latest available data for statewide average homeowner insurance premium costs from the Insurance Information Institute.

PMI costs are for 30-year fixed-rate mortgages. For conforming loan amounts, these are insurance costs for FICO scores of greater than 720 but less than 759. You can calculate mortgage insurance costs for other credit scores, down payment amounts and mortgage types using HSH.com's PMI Cost Calculator.

Data for the Pittsburgh metro area was provided by RealSTATs, a locally owned and operated real estate information company. Home-price data for Detroit was provided by Realcomp II Ltd., Michigan's largest Multiple Listing Service.

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