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Missouri vs Tennessee:
Mortgage & Housing Costs

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

MetricMissouriTennessee
Median Home Price$235K$340K
Property Tax Rate0.97%0.56%
Avg Closing Costs$2K$5K
Closing Cost %0.9%1.5%
Transfer TaxNone0.37%
Homeowners Insurance$2,200/yr$2,400/yr
First-Time Buyer Program
MHDC First Place Loan
Up to 4% cash assistance
THDA Great Choice Home Loan
Up to $25,000 DPA
Verdict

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 Tennessee. 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.

Missouri
Home Price$235,000
Down Payment (10%)$23,500
Loan Amount$211,500
Monthly P&I$1,337
Monthly Property Tax$190
Monthly Insurance$183
Monthly PMI$88
Total PITI$1,798/mo
Annual property tax: $2,280
Tennessee
Home Price$340,000
Down Payment (10%)$34,000
Loan Amount$306,000
Monthly P&I$1,934
Monthly Property Tax$159
Monthly Insurance$200
Monthly PMI$128
Total PITI$2,420/mo
Annual property tax: $1,904

Buying in Missouri saves you approximately $622/month ($7,464/year) compared to Tennessee, based on median home prices with identical loan terms.

Which State Is Right for You?

Missouri offers meaningfully lower home prices than Tennessee, with median prices running 31% less ($105K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Tennessee may find Missouri far more accessible, particularly when combined with local down payment assistance programs.

Tennessee has a moderate property tax advantage at 0.56% versus Missouri's 0.97%. While the rate gap of 0.41% may seem small, it translates to an annual difference of approximately $375 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.

Both states offer down payment assistance for first-time buyers. Missouri's MHDC First Place Loan provides Up to 4% cash assistance, while Tennessee's THDA Great Choice Home Loan offers Up to $25,000 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.

Key Takeaway

The bottom line: Missouri homes cost $105K less than Tennessee on average. That translates to roughly $622 less per month in total housing costs if you choose Missouri. 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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