Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and Montana. Updated for 2026.
Montana wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $430K and lower overall costs, Montana offers meaningful savings compared to California. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $2,373/month — that’s $28,476/year or $854K over the life of a 30-year loan. Buying in Montana is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in California, you need a household income of approximately $232K/year. In Montana, you need $131K/year — less by $102K/year. That $102K income gap means Montana is accessible to a significantly wider range of households.
Montana offers meaningfully lower home prices than California, with median prices running 45% less ($355K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of California may find Montana far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (California: 0.73%, Montana: 0.74%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Both states offer down payment assistance for first-time buyers. California's CalHFA Dream For All provides Up to 20% shared appreciation loan, while Montana's MBOH Regular Bond Program offers Up to $15,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Montana homes cost $355K less than California on average. That translates to roughly $2,373 less per month in total housing costs if you choose Montana. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.