10 Most Affordable Housing Markets in Illinois

Illinois is more than the Chicago metro area, for which homebuyers rejoice. While Chicago suburbs like Naperville and Glenview home prices can easily exceed $600,000, one city in the state offers homes at about one-tenth that price.

Illinois first-time buyers who feel like homeownership is just a dream should look beyond the big city to some of the nation’s most affordable housing markets in their own backyard.

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Affordable City and Typical Home Price

1. Danville - $65,422
2. Galesburg - $82,909
3. Decatur - $83,327
4. Alton - $86,071
5. Granite City - $100,455
6. Freeport - $100,714
7. Mount Vernon - $102,044
8. Peoria - $113,599
9. Rock Island - $115,500
10. Carbondale - $116,486

1. Danville - $65,422

This former coal mining town offers the most bang for your buck in Illinois.

A home price of $65,422 and 5% down would mean a mortgage of $62,151 and a monthly payment of just $452*.

With a house payment like that, why rent?

Thanks to plenty of state down payment assistance programs, homebuyers should have no trouble coming up with a down payment and closing costs.

*Payments mentioned in this article do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend. See methodology for payment details.

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2. Galesburg - $82,909

Weighing in at well under $100,000, Galesburg homes are going fast. Prices have increased by more than 10% in the past year, says Zillow, and homes go under contract in just 18 days.

And with an estimated monthly mortgage payment of just $572 according to our methodology, Galesburg homes are some of the most affordable in the country.

3. Decatur - $83,327

Abraham Lincoln buffs will love Decatur: The 16th president’s family home was located 10 miles from town. His first political speech and where he was nominated to run for U.S. President are also nearby.

But first-time homebuyers are probably more interested in home affordability today, a time when homeownership seems out of reach. Luckily, you could become a homeowner in this town for a mortgage payment under $600.

4. Alton - $86,071

On the shores of the Mississippi River near St. Louis, Alton is a viable option for homebuyers seeking extreme value. With estimated payments of just $594, you’d be hard-pressed to find a place to rent for this little money.

There’s plenty to do here, too, from riverboat tours to nightlife to family activities and a vibrant downtown. Residents will have plenty of money left over each month with which to enjoy it all, thanks to rock-bottom home prices.

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5. Granite City - $100,455

The first city on our list to break the $100,000 mark, Granite City is still on the extreme side of the affordability spectrum.

Employment is not far away. Nearby St. Louis offers employment from companies like Washington University, Boeing, SSM Health, and others.

6. Freeport - $100,714

Home prices are less than one-fourth of the national average in Freeport, but the town features another homebuyer benefit. The entire area is geographically eligible for zero-down USDA home loans. This mortgage type is available to those seeking to buy a regular home and meet income limits.

Get pre-approved for your Illinois USDA loan. Start here.

7. Mount Vernon - $102,044

An hour and a half east of St. Louis, Mount Vernon is a much smaller town of around 14,000. There’s plenty to do here, with a heritage festival, parades, a water park, and more. With an estimated mortgage payment of $704 per month, you can focus on other things besides how you’re going to make ends meet.

8. Peoria - $113,599

Illinois’ eighth largest city, Peoria can give you a bigger city feel without the home prices of many larger metros. And there must be something about this place. Zillow shows that home prices were near $81,000 in 2019, skyrocketing nearly 40% since then. Still, this city offers solid value for homebuyers.

9. Rock Island - $115,500

Across the Mississippi from Davenport, Iowa is Rock Island. The area offers ample employment opportunities along with affordable home prices, a recipe for a high standard of living.

See how much you can afford in Illinois.

10. Carbondale - $116,486

The most “expensive” town on our list weighs in at just $116,486 with an estimated payment of a whopping $804 per month. Who says Illinois isn't affordable?

Get Pre-approved for Your Illinois Home

When most people think of Illinois, they think of Chicago where even starter homes are out of reach for most buyers. But looking a little deeper, we discover extreme value in the state. Owning a home is a fraction of the cost of renting in many areas of the country.

Get started on your homeownership journey and consider these Illinois first-time buyer havens.

Get pre-approved for your Illinois home now.

Methodology

To find the 10 most affordable housing markets in Illinois, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for February 2024. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.946%, the average rate published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow’s report.