Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Illinois and Missouri. Updated for 2026.
Missouri wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $235K and lower overall costs, Missouri 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.
The monthly payment difference is $463/month — that’s $5,556/year or $167K over the life of a 30-year loan. Buying in Missouri 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 Illinois, you need a household income of approximately $97K/year. In Missouri, you need $77K/year — less by $20K/year. The $20K difference is meaningful but manageable for dual-income households.
Home prices in Illinois and Missouri are relatively close, with only a 13% difference ($35K). 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.
Property taxes are dramatically different: Missouri charges 0.97% while Illinois charges 2.07%, a gap of 1.10 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $2,280 in Missouri. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Closing costs are a one-time but significant expense. Illinois averages $5K in closing costs (2% of purchase price) while Missouri averages $2K (0.9%). 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. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Missouri's MHDC First Place Loan offers Up to 4% cash assistance. 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: property taxes are the defining difference here. Illinois's 2.07% rate versus Missouri's 0.97% means Missouri homeowners save approximately $3,310 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.