Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Illinois and Minnesota. Updated for 2026.
Illinois and Minnesota 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.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $258/month — that’s $3,096/year or $93K over the life of a 30-year loan. Buying in Illinois 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 Minnesota, you need a household income of approximately $108K/year. In Illinois, you need $97K/year — less by $11K/year. The $11K difference is meaningful but manageable for dual-income households.
Home prices in Illinois and Minnesota are relatively close, with only a 19% difference ($65K). 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.
Minnesota has a moderate property tax advantage at 1.12% versus Illinois's 2.07%. While the rate gap of 0.95% may seem small, it translates to an annual difference of approximately $1,837 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $15K in savings.
Both states offer down payment assistance for first-time buyers. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Minnesota's Minnesota Housing Start Up offers Up to $18,000 deferred 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.
The bottom line: Illinois and Minnesota are broadly similar in housing costs, with only $258/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.