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Montana vs Rhode Island:
Mortgage & Housing Costs

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

MetricMontanaRhode Island
Median Home Price$430K$425K
Property Tax Rate0.74%1.53%
Avg Closing Costs$6K$7K
Closing Cost %1.5%1.7%
Transfer TaxNone0.46%
Homeowners Insurance$2,100/yr$2,200/yr
First-Time Buyer Program
MBOH Regular Bond Program
Up to $15,000 DPA
RIHousing First Homes
10K DPA forgivable
Verdict

Montana wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Rhode Island has a lower total cost when combining home price, closing costs, and insurance. 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.

Montana
Home Price$430,000
Down Payment (10%)$43,000
Loan Amount$387,000
Monthly P&I$2,446
Monthly Property Tax$265
Monthly Insurance$175
Monthly PMI$161
Total PITI$3,048/mo
Annual property tax: $3,182
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

The monthly payment difference is $254/month — thats $3,048/year or $91K over the life of a 30-year loan. Buying in Montana 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.

Montana
$131K/yr
minimum household income
Rhode Island
$142K/yr
minimum household income

To afford the median home in Rhode Island, you need a household income of approximately $142K/year. In Montana, you need $131K/year — less by $11K/year. The $11K difference is meaningful but manageable for dual-income households.

Which State Is Right for You?

Home prices in Montana and Rhode Island are relatively close, with only a 1% difference ($5K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.

Montana has a moderate property tax advantage at 0.74% versus Rhode Island's 1.53%. While the rate gap of 0.79% may seem small, it translates to an annual difference of approximately $3,321 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $27K in savings.

Both states offer down payment assistance for first-time buyers. Montana's MBOH Regular Bond Program provides Up to $15,000 DPA, 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: Montana and Rhode Island are broadly similar in housing costs, with only $254/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.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Montana or Rhode Island?
Montana is cheaper overall. The median home costs $430K compared to $425K in Rhode Island, and the total monthly PITI payment is $3,048 versus $3,302. That works out to $254 less per month or $3,048 less per year in Montana.
How much more are property taxes in Rhode Island vs Montana?
Rhode Island has a property tax rate of 1.53% compared to 0.74% in Montana. On the median home, that means Rhode Island homeowners pay approximately $6,503/year in property taxes versus $3,182/year in Montana — a difference of $3,321/year.
Which state has better first-time buyer programs, Montana or Rhode Island?
Montana offers the MBOH Regular Bond Program (Up to $15,000 DPA), while Rhode Island has the RIHousing First Homes (10K DPA forgivable). 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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