Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Minnesota and Mississippi. Updated for 2026.
Mississippi wins 4 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 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 Mississippi saves you approximately $1,141/month ($13,692/year) compared to Minnesota, based on median home prices with identical loan terms.
Mississippi offers meaningfully lower home prices than Minnesota, with median prices running 48% less ($160K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Minnesota may find Mississippi far more accessible, particularly when combined with local down payment assistance programs.
Mississippi has a moderate property tax advantage at 0.8% versus Minnesota's 1.12%. While the rate gap of 0.32% may seem small, it translates to an annual difference of approximately $2,352 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $19K in savings.
Both states offer down payment assistance for first-time buyers. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred 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 $160K less than Minnesota on average. That translates to roughly $1,141 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.