Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Hawaii and Montana. Updated for 2026.
Montana wins 3 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 Hawaii. 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 $2,278/month — that’s $27,336/year or $820K 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 Hawaii, you need a household income of approximately $228K/year. In Montana, you need $131K/year — less by $98K/year. That $98K income gap means Montana is accessible to a significantly wider range of households.
Montana offers meaningfully lower home prices than Hawaii, with median prices running 48% less ($400K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Hawaii may find Montana far more accessible, particularly when combined with local down payment assistance programs.
Hawaii has a moderate property tax advantage at 0.28% versus Montana's 0.74%. While the rate gap of 0.46% may seem small, it translates to an annual difference of approximately $858 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $7K in savings.
Insurance costs favor Hawaii at $1,200/year versus $2,100/year in Montana, 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. Hawaii averages $12K in closing costs (1.5% of purchase price) while Montana averages $6K (1.5%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. 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. Hawaii's HHFDC Hula Mae Program provides Below-market rate mortgages, 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 $400K less than Hawaii on average. That translates to roughly $2,278 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.