Median home: $235,000 | Mortgage rate: 7.1% | Property tax: 0.98% | Insurance: $1,150/yr
North Dakota is an energy-rich Plains state with very affordable homes. With a median home price of $235,000 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 North Dakota, with a property tax rate of 0.98% and average insurance of $1,150/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median North Dakota home requires $47,000. FHA loans with 3.5% down need just $8,225, but you will pay mortgage insurance. North Dakota offers a Homestead Credit for low-income residents over 65.
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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 North Dakota, with median home prices at $235,000, you typically need a household income of at least $235,000 to afford the median home.
To afford the median North Dakota home at $235,000 with 20% down at 7.1% interest, you need approximately $54,147 annual household income. This is based on the 28% housing cost guideline.
The median home price in North Dakota is approximately $235,000 as of 2026. Prices vary significantly by city and county. North Dakota is an energy-rich Plains state with very affordable homes.
A 20% down payment on the median North Dakota home ($235,000) is $47,000. FHA loans allow 3.5% down ($8,225) and VA loans offer 0% down for eligible veterans.
North Dakota has a property tax rate of 0.98%, which is near the national average. On the median home, that is $2,303/year. North Dakota offers a Homestead Credit for low-income residents over 65.