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Louisiana vs Rhode Island:
Mortgage & Housing Costs

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

MetricLouisianaRhode Island
Median Home Price$195K$425K
Property Tax Rate0.55%1.53%
Avg Closing Costs$3K$7K
Closing Cost %1.6%1.7%
Transfer TaxNone0.46%
Homeowners Insurance$3,500/yr$2,200/yr
First-Time Buyer Program
LHC Mortgage Revenue Bond
Up to $10,000 soft second loan
RIHousing First Homes
10K DPA forgivable
Verdict

Louisiana wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $195K and lower overall costs, Louisiana 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.

Louisiana
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$89
Monthly Insurance$292
Monthly PMI$73
Total PITI$1,563/mo
Annual property tax: $1,073
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 Louisiana saves you approximately $1,739/month ($20,868/year) compared to Rhode Island, based on median home prices with identical loan terms.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Louisiana cost 54% less than in Rhode Island — that's a difference of $230K on the median home. For buyers relocating from Rhode Island to Louisiana, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Rhode Island home could fund a much larger down payment in Louisiana, potentially eliminating PMI and reducing your monthly payment dramatically.

Louisiana has a moderate property tax advantage at 0.55% versus Rhode Island's 1.53%. While the rate gap of 0.98% may seem small, it translates to an annual difference of approximately $5,430 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $43K in savings.

Insurance costs favor Rhode Island at $2,200/year versus $3,500/year in Louisiana, a difference of $1,300 annually. While not the largest cost factor, this adds up to over $13K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Closing costs are a one-time but significant expense. Rhode Island averages $7K in closing costs (1.7% of purchase price) while Louisiana averages $3K (1.6%). 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. Louisiana's LHC Mortgage Revenue Bond provides Up to $10,000 soft second 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: Louisiana homes cost $230K less than Rhode Island on average. That translates to roughly $1,739 less per month in total housing costs if you choose Louisiana. 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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