Michigan is one of the most affordable states in the U.S., with many cities offering homes well under $200,000.
Not bad considering the average home price in the U.S. now exceeds $512,000, says the St. Louis Federal Reserve.
The state has been a haven for homebuyers who might be locked out of homeownership in most areas of the country.
Ready to buy a home? The Great Lakes State could be the place to do it.
Affordable Michigan Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Flint | $61,160 |
| 2 | Detroit | $74,530 |
| 3 | Inkster | $108,022 |
| 4 | Bay City | $118,122 |
| 5 | Saginaw | $122,856 |
| 6 | Pontiac | $131,988 |
| 7 | Burton | $147,600 |
| 8 | Lincoln Park | $148,891 |
| 9 | Eastpointe | $151,268 |
| 10 | Benton Harbor | $151,562 |
1. Flint - $61,160
A mortgage payment on the typical home in Flint is estimated to be just $488 a month – a claim not many U.S. cities can make. With prices this low, it’s often cheaper to buy than rent. While the city of Flint has seen its struggles, revitalization efforts are underway, and home values have nearly doubled since early 2020.
2. Detroit - $74,530
Another stalwart of affordability, the estimated monthly mortgage payment for a typical Detroit home weighs in at only $595 according to our methodology. That’s pretty manageable, with regional employers keeping 2.3 million area residents working. Some well-known names include Rocket Companies Inc., Stellantis NV, Henry Ford Health, Ford Motor Company, Detroit Public Schools, and more.
3. Inkster - $108,022
At just over $100,000, the typical residence in Inkster is a great value. Located around 14 miles from Downtown Detroit, Inkster has a population of more than 25,000 and is home to the Inkster Valley Golf Club. Buying the average property in Inkster comes with an estimated mortgage payment of $863 per month.
4. Bay City - $118,122
On the tip of Saginaw Bay in Lake Huron, Bay City offers easy access to outdoor activities such as boating, fishing, camping, and beachcombing. Homes here are affordable – for now – with the typical property having a monthly price tag of just $943.
5. Saginaw - $122,856
Just south of Bay City is Saginaw. This city of 43,000 is a hub for manufacturing, with major employers including Covenant Healthcare, Nexteer Automotive, and Hemlock Semiconductor. According to our estimates, a mortgage payment in this town will set you back just $981 per month.
6. Pontiac - $131,988
The namesake of the once-famous car brand, Pontiac is now about more than just the auto industry. The city hosts United Wholesale Mortgage, one of the largest mortgage lenders in the U.S., as well as GM, Stellantis NV, and Corewell Health, among other notable employers. With such a robust job market, it’s surprising that the average home comes with an estimated monthly cost of an affordable $1,054.
7. Burton - $147,600
Situated around 60 miles north of Detroit, the city of Burton, with a population of around 30,000, offers abundant, affordable housing options. There’s plenty to do in Burton, with numerous nearby parks, golf courses, and the 383-acre For-Mar Nature Preserve and Arboretum. The average monthly cost of a home in Burton? An estimated $1,179.
8. Lincoln Park - $148,891
A southern Detroit suburb of around 40,000 residents, Lincoln Park is an affordable city with a high quality of life. Learn how to scuba dive at Scuba Centers of Michigan, visit the famous Chesley’s Bar & Grille, and try local fare at the Lincoln Park Farmers Market. And with an estimated mortgage payment of $1,189 per month, you’ll have money left over each month to enjoy the city to the fullest.
9. Eastpointe - $151,268
Eastpointe is located near Lake St. Clair, around 11 miles northeast of Downtown Detroit. The American Power Boat Association is headquartered here, and the city hosts the Cruisin’ Gratiot festival each June, paying homage to the area’s automotive history. Buying a home in Eastpointe is affordable, with the average home estimated to have a monthly mortgage cost of $1,208.
10. Benton Harbor - $151,562
Nearly due west of Detroit, on the opposite side of the state, is Benton Harbor. This smaller city on the shores of Lake Michigan – with a population of under 10,000 – has more than just low home prices. Just a few minutes outside town are areas eligible for the zero-down USDA home loan. Conventional borrowers can expect to pay an estimated $1,210 per month for the average home in Benton Harbor.
Get Pre-Approved for Your Michigan Home
Michigan is the perfect mix of quality of life and affordability. With countless miles of shoreline, big cities, and small towns, the state is worth considering as your permanent home. Thinking about buying? See if you’re eligible to get pre-approved for a mortgage today.
Methodology
To find the 10 most affordable housing markets in Michigan, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. 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 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
