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Florida vs Louisiana:
Mortgage & Housing Costs

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

MetricFloridaLouisiana
Median Home Price$395K$195K
Property Tax Rate0.86%0.55%
Avg Closing Costs$7K$3K
Closing Cost %1.8%1.6%
Transfer Tax0.7%None
Homeowners Insurance$4,200/yr$3,500/yr
First-Time Buyer Program
Florida Hometown Heroes
Up to 5% as 0% deferred loan
LHC Mortgage Revenue Bond
Up to $10,000 soft second loan
Verdict

Louisiana wins 6 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $195K and lower overall costs, Louisiana offers meaningful savings compared to Florida. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

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

Florida
Home Price$395,000
Down Payment (10%)$39,500
Loan Amount$355,500
Monthly P&I$2,247
Monthly Property Tax$283
Monthly Insurance$350
Monthly PMI$148
Total PITI$3,028/mo
Annual property tax: $3,397
Louisiana
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$89
Monthly Insurance$292
Monthly PMI$73
Total PITI$1,563/mo
Annual property tax: $1,073

The monthly payment difference is $1,465/month — thats $17,580/year or $527K over the life of a 30-year loan. Buying in Louisiana 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.

Florida
$130K/yr
minimum household income
Louisiana
$67K/yr
minimum household income

To afford the median home in Florida, you need a household income of approximately $130K/year. In Louisiana, you need $67K/year — less by $63K/year. That $63K income gap means Louisiana is accessible to a significantly wider range of households.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Louisiana cost 51% less than in Florida — that's a difference of $200K on the median home. For buyers relocating from Florida to Louisiana, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Florida home could fund a much larger down payment in Louisiana, potentially eliminating PMI and reducing your monthly payment dramatically.

Louisiana has a moderate property tax advantage at 0.55% versus Florida's 0.86%. While the rate gap of 0.31% may seem small, it translates to an annual difference of approximately $2,325 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $19K in savings.

Insurance costs favor Louisiana at $3,500/year versus $4,200/year in Florida, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K 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. Florida averages $7K in closing costs (1.8% of purchase price) while Louisiana averages $3K (1.6%). Much of Florida's higher costs come from its 0.7% transfer tax, which adds $3K 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. Florida's Florida Hometown Heroes provides Up to 5% as 0% deferred loan, while Louisiana's LHC Mortgage Revenue Bond offers Up to $10,000 soft second loan. 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: Louisiana homes cost $200K less than Florida on average. That translates to roughly $1,465 less per month in total housing costs if you choose Louisiana. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Louisiana or Florida?
Louisiana is cheaper overall. The median home costs $195K compared to $395K in Florida, and the total monthly PITI payment is $1,563 versus $3,028. That works out to $1,465 less per month or $17,580 less per year in Louisiana.
How much more are property taxes in Florida vs Louisiana?
Florida has a property tax rate of 0.86% compared to 0.55% in Louisiana. On the median home, that means Florida homeowners pay approximately $3,397/year in property taxes versus $1,073/year in Louisiana — a difference of $2,324/year.
Which state has better first-time buyer programs, Florida or Louisiana?
Florida offers the Florida Hometown Heroes (Up to 5% as 0% deferred loan), while Louisiana has the LHC Mortgage Revenue Bond (Up to $10,000 soft second loan). 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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