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Minnesota vs Ohio:
Mortgage & Housing Costs

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

MetricMinnesotaOhio
Median Home Price$335K$215K
Property Tax Rate1.12%1.56%
Avg Closing Costs$5K$3K
Closing Cost %1.4%1.4%
Transfer Tax0.33%0.4%
Homeowners Insurance$2,100/yr$1,400/yr
First-Time Buyer Program
Minnesota Housing Start Up
Up to $18,000 deferred loan
OHFA Your Choice! Down Payment Assistance
2.5% or 5% of purchase price
Verdict

Ohio wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $215K and lower overall costs, Ohio offers meaningful savings compared to Minnesota. 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.

Minnesota
Home Price$335,000
Down Payment (10%)$33,500
Loan Amount$301,500
Monthly P&I$1,906
Monthly Property Tax$313
Monthly Insurance$175
Monthly PMI$126
Total PITI$2,519/mo
Annual property tax: $3,752
Ohio
Home Price$215,000
Down Payment (10%)$21,500
Loan Amount$193,500
Monthly P&I$1,223
Monthly Property Tax$280
Monthly Insurance$117
Monthly PMI$81
Total PITI$1,700/mo
Annual property tax: $3,354

The monthly payment difference is $819/month — thats $9,828/year or $295K over the life of a 30-year loan. Buying in Ohio is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Minnesota
$108K/yr
minimum household income
Ohio
$73K/yr
minimum household income

To afford the median home in Minnesota, you need a household income of approximately $108K/year. In Ohio, you need $73K/year — less by $35K/year. That $35K income gap means Ohio is accessible to a significantly wider range of households.

Which State Is Right for You?

Ohio offers meaningfully lower home prices than Minnesota, with median prices running 36% less ($120K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Minnesota may find Ohio far more accessible, particularly when combined with local down payment assistance programs.

Minnesota has a moderate property tax advantage at 1.12% versus Ohio's 1.56%. While the rate gap of 0.44% may seem small, it translates to an annual difference of approximately $398 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $3K in savings.

Insurance costs favor Ohio at $1,400/year versus $2,100/year in Minnesota, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Both states offer down payment assistance for first-time buyers. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred loan, while Ohio's OHFA Your Choice! Down Payment Assistance offers 2.5% or 5% of purchase price. 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: Ohio homes cost $120K less than Minnesota on average. That translates to roughly $819 less per month in total housing costs if you choose Ohio. 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

Minnesota vs AlaskaMinnesota vs ArizonaMinnesota vs ConnecticutOhio vs AlabamaOhio vs ArkansasOhio vs Illinois

Frequently Asked Questions

Is it cheaper to buy a home in Ohio or Minnesota?
Ohio is cheaper overall. The median home costs $215K compared to $335K in Minnesota, and the total monthly PITI payment is $1,700 versus $2,519. That works out to $819 less per month or $9,828 less per year in Ohio.
How much more are property taxes in Ohio vs Minnesota?
Ohio has a property tax rate of 1.56% compared to 1.12% in Minnesota. On the median home, that means Ohio homeowners pay approximately $3,354/year in property taxes versus $3,752/year in Minnesota — a difference of $398/year.
Which state has better first-time buyer programs, Minnesota or Ohio?
Minnesota offers the Minnesota Housing Start Up (Up to $18,000 deferred loan), while Ohio has the OHFA Your Choice! Down Payment Assistance (2.5% or 5% of purchase price). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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