Median home: $175,000 | Mortgage rate: 7.1% | Property tax: 0.65% | Insurance: $1,900/yr
Mississippi is the most affordable housing state in America. With a median home price of $175,000 and mortgage rates averaging 7.1%, understanding what you can afford before house hunting is essential.
The 28/36 rule is the gold standard: spend no more than 28% of gross income on housing and no more than 36% on total debt. In Mississippi, with a property tax rate of 0.65% and average insurance of $1,900/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Mississippi home requires $35,000. FHA loans with 3.5% down need just $6,125, but you will pay mortgage insurance. Mississippi offers an additional homestead exemption for residents over 65.
See all Mississippi financial calculators:
Based on the 28/36 rule, your total housing payment should not exceed 28% of gross monthly income, and total debts should stay under 36%. In Mississippi, with median home prices at $175,000, you typically need a household income of at least $175,000 to afford the median home.
To afford the median Mississippi home at $175,000 with 20% down at 7.1% interest, you need approximately $40,322 annual household income. This is based on the 28% housing cost guideline.
The median home price in Mississippi is approximately $175,000 as of 2026. Prices vary significantly by city and county. Mississippi is the most affordable housing state in America.
A 20% down payment on the median Mississippi home ($175,000) is $35,000. FHA loans allow 3.5% down ($6,125) and VA loans offer 0% down for eligible veterans.
Mississippi has a property tax rate of 0.65%, which is below the national average. On the median home, that is $1,138/year. Mississippi offers an additional homestead exemption for residents over 65.