Best States to Buy a Home vs Rent (2026)
Not every state favors buying over renting. This guide ranks all 50 states by how affordable homeownership is relative to renting, using median home prices, rent, and property tax data to help you decide whether to buy or keep renting.
- West Virginia ranks #1 with the lowest median home price at $183,000.
- Hawaii ranks last at $837,000 — the highest among all states.
- The top 5 states are West Virginia, Mississippi, Louisiana, Oklahoma, Arkansas.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by median home price
| # | State | Median Home Price | Median 2BR Rent | Property Tax | Calculator |
|---|---|---|---|---|---|
| 1 | West Virginia | $183,000 | $1,000 | 0.51% | Rent vs Buy Calculator |
| 2 | Mississippi | $198,000 | $1,041 | 0.58% | Rent vs Buy Calculator |
| 3 | Louisiana | $218,000 | $1,138 | 0.55% | Rent vs Buy Calculator |
| 4 | Oklahoma | $225,000 | $1,136 | 0.79% | Rent vs Buy Calculator |
| 5 | Arkansas | $229,000 | $1,083 | 0.56% | Rent vs Buy Calculator |
| 6 | Kentucky | $235,000 | $1,125 | 0.74% | Rent vs Buy Calculator |
| 7 | Iowa | $241,000 | $1,112 | 1.33% | Rent vs Buy Calculator |
| 8 | Alabama | $242,000 | $1,087 | 0.37% | Rent vs Buy Calculator |
| 9 | Ohio | $252,000 | $1,238 | 1.36% | Rent vs Buy Calculator |
| 10 | Kansas | $253,000 | $1,129 | 1.21% | Rent vs Buy Calculator |
| 11 | Indiana | $262,000 | $1,255 | 0.76% | Rent vs Buy Calculator |
| 12 | Michigan | $270,000 | $1,327 | 1.19% | Rent vs Buy Calculator |
| 13 | Missouri | $272,000 | $1,154 | 0.89% | Rent vs Buy Calculator |
| 14 | Nebraska | $284,000 | $1,200 | 1.44% | Rent vs Buy Calculator |
| 15 | North Dakota | $294,000 | $1,088 | 0.92% | Rent vs Buy Calculator |
| 16 | Pennsylvania | $294,000 | $1,501 | 1.26% | Rent vs Buy Calculator |
| 17 | Illinois | $299,000 | $1,579 | 1.88% | Rent vs Buy Calculator |
| 18 | Texas | $303,000 | $1,557 | 1.40% | Rent vs Buy Calculator |
| 19 | South Carolina | $309,000 | $1,352 | 0.49% | Rent vs Buy Calculator |
| 20 | New Mexico | $321,000 | $1,308 | 0.63% | Rent vs Buy Calculator |
| 21 | South Dakota | $326,000 | $1,094 | 1.00% | Rent vs Buy Calculator |
| 22 | Georgia | $335,000 | $1,551 | 0.79% | Rent vs Buy Calculator |
| 23 | Tennessee | $339,000 | $1,363 | 0.52% | Rent vs Buy Calculator |
| 24 | North Carolina | $340,000 | $1,410 | 0.66% | Rent vs Buy Calculator |
| 25 | Wisconsin | $342,000 | $1,287 | 1.32% | Rent vs Buy Calculator |
| 26 | Minnesota | $357,000 | $1,504 | 1.00% | Rent vs Buy Calculator |
| 27 | Wyoming | $373,000 | $1,079 | 0.53% | Rent vs Buy Calculator |
| 28 | Florida | $378,000 | $1,973 | 0.78% | Rent vs Buy Calculator |
| 29 | Alaska | $401,000 | $1,591 | 0.94% | Rent vs Buy Calculator |
| 30 | Vermont | $402,000 | $1,684 | 1.51% | Rent vs Buy Calculator |
| 31 | Delaware | $412,000 | $1,675 | 0.54% | Rent vs Buy Calculator |
| 32 | Virginia | $420,000 | $1,735 | 0.78% | Rent vs Buy Calculator |
| 33 | Arizona | $423,000 | $1,709 | 0.48% | Rent vs Buy Calculator |
| 34 | Maine | $424,000 | $1,681 | 0.98% | Rent vs Buy Calculator |
| 35 | Maryland | $436,000 | $1,955 | 0.92% | Rent vs Buy Calculator |
| 36 | Nevada | $448,000 | $1,733 | 0.50% | Rent vs Buy Calculator |
| 37 | Connecticut | $455,000 | $2,027 | 1.54% | Rent vs Buy Calculator |
| 38 | Montana | $476,000 | $1,558 | 0.61% | Rent vs Buy Calculator |
| 39 | Idaho | $482,000 | $1,410 | 0.50% | Rent vs Buy Calculator |
| 40 | Oregon | $504,000 | $1,738 | 0.81% | Rent vs Buy Calculator |
| 41 | Rhode Island | $517,000 | $1,765 | 1.12% | Rent vs Buy Calculator |
| 42 | New Hampshire | $523,000 | $2,040 | 1.50% | Rent vs Buy Calculator |
| 43 | New York | $526,000 | $2,520 | 1.30% | Rent vs Buy Calculator |
| 44 | Utah | $542,000 | $1,582 | 0.48% | Rent vs Buy Calculator |
| 45 | Colorado | $543,000 | $1,895 | 0.50% | Rent vs Buy Calculator |
| 46 | New Jersey | $585,000 | $2,282 | 1.88% | Rent vs Buy Calculator |
| 47 | Washington | $603,000 | $2,072 | 0.75% | Rent vs Buy Calculator |
| 48 | Massachusetts | $673,000 | $2,527 | 1.00% | Rent vs Buy Calculator |
| 49 | California | $776,000 | $2,745 | 0.70% | Rent vs Buy Calculator |
| 50 | Hawaii | $837,000 | $2,568 | 0.29% | Rent vs Buy Calculator |
Methodology
How we collected and ranked the data
States are ranked by median home price (ascending) to identify where homeownership is most accessible. We compare this against median 2BR rent and effective property tax rates. Price-to-rent ratios below 15 generally favor buying; above 20 generally favor renting. Data is sourced from Census Bureau, Zillow, and HUD Fair Market Rent records, updated for 2026.
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View all 107 state comparisonsFrequently Asked Questions
Which states are best for buying a home?
West Virginia, Mississippi, Arkansas, Oklahoma, and Iowa have the lowest median home prices, making homeownership most accessible. Combined with lower property taxes, these states strongly favor buying over renting.
When does it make more sense to rent?
In states like Hawaii, California, and Massachusetts where price-to-rent ratios exceed 20, renting is often more financially efficient. If you plan to stay less than 5 years, renting typically wins regardless of location due to closing costs and transaction fees.
What is a good price-to-rent ratio?
A price-to-rent ratio below 15 strongly favors buying. Between 15-20 is a gray area that depends on your plans. Above 20 favors renting. Calculate by dividing home price by annual rent.