Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Kentucky and Minnesota. Updated for 2026.
Kentucky wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $210K and lower overall costs, Kentucky offers meaningful savings compared to Minnesota. 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 Kentucky saves you approximately $900/month ($10,800/year) compared to Minnesota, based on median home prices with identical loan terms.
Kentucky offers meaningfully lower home prices than Minnesota, with median prices running 37% less ($125K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Minnesota may find Kentucky far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Kentucky: 0.83%, Minnesota: 1.12%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Both states offer down payment assistance for first-time buyers. Kentucky's KHC Regular DAP provides Up to $6,000 repayable 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: Kentucky homes cost $125K less than Minnesota on average. That translates to roughly $900 less per month in total housing costs if you choose Kentucky. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.