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Illinois vs Rhode Island:
Mortgage & Housing Costs

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

MetricIllinoisRhode Island
Median Home Price$270K$425K
Property Tax Rate2.07%1.53%
Avg Closing Costs$5K$7K
Closing Cost %2.0%1.7%
Transfer Tax0.1%0.46%
Homeowners Insurance$1,900/yr$2,200/yr
First-Time Buyer Program
IHDA 1stHomeIllinois
$7,500 forgivable loan
RIHousing First Homes
10K DPA forgivable
Verdict

Illinois wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $270K and lower overall costs, Illinois offers meaningful savings compared to Rhode Island. 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.

Illinois
Home Price$270,000
Down Payment (10%)$27,000
Loan Amount$243,000
Monthly P&I$1,536
Monthly Property Tax$466
Monthly Insurance$158
Monthly PMI$101
Total PITI$2,261/mo
Annual property tax: $5,589
Rhode Island
Home Price$425,000
Down Payment (10%)$42,500
Loan Amount$382,500
Monthly P&I$2,418
Monthly Property Tax$542
Monthly Insurance$183
Monthly PMI$159
Total PITI$3,302/mo
Annual property tax: $6,503

Buying in Illinois saves you approximately $1,041/month ($12,492/year) compared to Rhode Island, based on median home prices with identical loan terms.

Which State Is Right for You?

Illinois offers meaningfully lower home prices than Rhode Island, with median prices running 36% less ($155K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Rhode Island may find Illinois far more accessible, particularly when combined with local down payment assistance programs.

Rhode Island has a moderate property tax advantage at 1.53% versus Illinois's 2.07%. While the rate gap of 0.54% may seem small, it translates to an annual difference of approximately $914 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.

Both states offer down payment assistance for first-time buyers. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Rhode Island's RIHousing First Homes offers 10K DPA forgivable. 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: Illinois homes cost $155K less than Rhode Island on average. That translates to roughly $1,041 less per month in total housing costs if you choose Illinois. 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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