Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Colorado 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 Colorado. 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 $593/month — that’s $7,116/year or $213K 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 Colorado, you need a household income of approximately $156K/year. In Montana, you need $131K/year — less by $25K/year. That $25K income gap means Montana is accessible to a significantly wider range of households.
Home prices in Colorado and Montana are relatively close, with only a 17% difference ($90K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.
Property tax rates are similar in both states (Colorado: 0.51%, 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.
Insurance costs favor Montana at $2,100/year versus $3,200/year in Colorado, a difference of $1,100 annually. While not the largest cost factor, this adds up to over $11K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Both states offer down payment assistance for first-time buyers. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, 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: Colorado and Montana are broadly similar in housing costs, with only $593/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.