Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Minnesota 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 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.
The monthly payment difference is $721/month — that’s $8,652/year or $260K 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 Minnesota, you need a household income of approximately $108K/year. In Missouri, you need $77K/year — less by $31K/year. That $31K income gap means Missouri is accessible to a significantly wider range of households.
Missouri offers meaningfully lower home prices than Minnesota, with median prices running 30% less ($100K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Minnesota may find Missouri far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Minnesota: 1.12%, Missouri: 0.97%), 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. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred 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: Minnesota and Missouri are broadly similar in housing costs, with only $721/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.