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Delaware vs Rhode Island:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Delaware and Rhode Island. Updated for 2026.

MetricDelawareRhode Island
Median Home Price$355K$425K
Property Tax Rate0.56%1.53%
Avg Closing Costs$12K$7K
Closing Cost %3.3%1.7%
Transfer Tax4%0.46%
Homeowners Insurance$1,300/yr$2,200/yr
First-Time Buyer Program
DSHA Homeownership Loan
Up to 5% Preferred Plus
RIHousing First Homes
10K DPA forgivable
Verdict

Delaware and Rhode Island are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Delaware
Home Price$355,000
Down Payment (10%)$35,500
Loan Amount$319,500
Monthly P&I$2,019
Monthly Property Tax$166
Monthly Insurance$108
Monthly PMI$133
Total PITI$2,427/mo
Annual property tax: $1,988
Rhode Island
Home Price$425,000
Down Payment (10%)$42,500
Loan Amount$382,500
Monthly P&I$2,418
Monthly Property Tax$542
Monthly Insurance$183
Monthly PMI$159
Total PITI$3,302/mo
Annual property tax: $6,503

The monthly payment difference is $875/month — thats $10,500/year or $315K over the life of a 30-year loan. Buying in Delaware is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Delaware
$104K/yr
minimum household income
Rhode Island
$142K/yr
minimum household income

To afford the median home in Rhode Island, you need a household income of approximately $142K/year. In Delaware, you need $104K/year — less by $38K/year. That $38K income gap means Delaware is accessible to a significantly wider range of households.

Which State Is Right for You?

Home prices in Delaware and Rhode Island are relatively close, with only a 16% difference ($70K). 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.

Delaware has a moderate property tax advantage at 0.56% versus Rhode Island's 1.53%. While the rate gap of 0.97% may seem small, it translates to an annual difference of approximately $4,515 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $36K in savings.

Insurance costs favor Delaware at $1,300/year versus $2,200/year in Rhode Island, a difference of $900 annually. While not the largest cost factor, this adds up to over $9K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Closing costs are a one-time but significant expense. Delaware averages $12K in closing costs (3.3% of purchase price) while Rhode Island averages $7K (1.7%). Much of Delaware's higher costs come from its 4% transfer tax, which adds $14K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, while Rhode Island's RIHousing First Homes offers 10K DPA forgivable. 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.

Key Takeaway

The bottom line: Delaware and Rhode Island are broadly similar in housing costs, with only $875/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.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Delaware or Rhode Island?
Delaware is cheaper overall. The median home costs $355K compared to $425K in Rhode Island, and the total monthly PITI payment is $2,427 versus $3,302. That works out to $875 less per month or $10,500 less per year in Delaware.
How much more are property taxes in Rhode Island vs Delaware?
Rhode Island has a property tax rate of 1.53% compared to 0.56% in Delaware. On the median home, that means Rhode Island homeowners pay approximately $6,503/year in property taxes versus $1,988/year in Delaware — a difference of $4,515/year.
Which state has better first-time buyer programs, Delaware or Rhode Island?
Delaware offers the DSHA Homeownership Loan (Up to 5% Preferred Plus), while Rhode Island has the RIHousing First Homes (10K DPA forgivable). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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