Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Illinois and Mississippi. Updated for 2026.
Mississippi wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $175K and lower overall costs, Mississippi offers meaningful savings compared to Illinois. 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.
Buying in Mississippi saves you approximately $883/month ($10,596/year) compared to Illinois, based on median home prices with identical loan terms.
Mississippi offers meaningfully lower home prices than Illinois, with median prices running 35% less ($95K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Illinois may find Mississippi far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Mississippi charges 0.8% while Illinois charges 2.07%, a gap of 1.27 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $1,400 in Mississippi. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Both states offer down payment assistance for first-time buyers. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Mississippi's MHC Smart Solution offers Up to $10,000 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: Mississippi homes cost $95K less than Illinois on average. That translates to roughly $883 less per month in total housing costs if you choose Mississippi. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.