Top 10 U.S. Cities to Buy a Home for Under $250,000 [2023]

In the ever-changing U.S. real estate scene, recent years have seen significant shifts. Millennials are redefining their living preferences, moving from bustling cities to peaceful suburbs, and vacation properties are capturing investors’ attention. Throughout this journey, property prices have experienced remarkable changes. Whether you’re a first-time homebuyer, an experienced investor, or even a U.S. expat or foreign national, the city you choose for your investment can greatly impact potential appreciation and rental income.?

Real estate investment is a strategic move that can provide reliable rental income while potentially increasing your overall wealth through property appreciation. For many, it’s a cornerstone of their path to financial success. Here’s the list of 10 U.S. cities where buying a home for under $250,000 promises both affordability and the potential for solid returns on investment.

Maine???????

Median Purchase Price: $240,000

Average Rental Income: $1,700

Maine is a beautiful state with a low cost of living and a variety of outdoor activities, making it a great place to invest in a rental property. In addition to its affordability and strong rental market, Maine also has a growing population. This is due in part to the state’s strong job market and high quality of life. As the population continues to grow, so too will the demand for housing. This makes Maine an ideal place to invest in a rental property for the long term.

Vermont

Median Purchase Price: $245,000

Average Rental Income: $1,800

Vermont is a charming state with a low cost of living and a variety of outdoor activities, making it a prime spot for rental property investment. Vermont not only offers affordability and a robust rental market but also boasts a stable economy, a high quality of life, Fortune 500 companies, a low unemployment rate, breathtaking scenery, and vibrant cultural attractions.

New Hampshire

Median Purchase Price: $250,000

Average Rental Income: $1,900

New Hampshire, a scenic state with an affordable lifestyle and abundant outdoor recreation options, presents an ideal landscape for rental property investment. With a strong job market, a high quality of life, low unemployment, captivating scenery, and rich cultural offerings, New Hampshire offers a well-rounded living experience and promising investment opportunities.

Massachusetts

Median Purchase Price: $255,000

Average Rental Income: $2,000

Investing in Massachusetts real estate presents several compelling benefits. The state’s strong and diverse economy, driven by sectors like technology, healthcare, and education, creates a stable and lucrative real estate market. The presence of renowned universities like Harvard and MIT attracts a consistent flow of potential tenants and buyers, bolstering demand.

Rhode Island

Median Purchase Price: $260,000

Average Rental Income: $2,100

Rhode Island’s real estate scene offers several attractive benefits. The state’s stable economy, driven by various industries, provides a secure and potentially profitable investment opportunity. Additionally, Rhode Island’s vibrant culture and the presence of respected institutions like Brown University continually attract potential tenants and buyers, maintaining a robust demand for real estate properties.

Connecticut

Median Purchase Price: $265,000

Average Rental Income: $2,200

Connecticut’s real estate market offers numerous advantages. The state’s strong economy, diverse job opportunities, and proximity to major cities like New York make it an appealing destination for real estate investment. With its charming towns, excellent schools, and picturesque landscapes, Connecticut attracts both renters and homebuyers, ensuring steady demand in the housing market.

Pennsylvania

Median Purchase Price: $275,000

Average Rental Income: $2,400

Investing in Pennsylvania’s real estate market presents various benefits. The state’s diverse economy, affordable living costs, and rich history make it an attractive destination for property investors. With major corporate headquarters and esteemed universities like the University of Pennsylvania, Carnegie Mellon University, and Penn State University, Pennsylvania is a hub of education and business, appealing to a broad spectrum of tenants and buyers.

Maryland

Median Purchase Price: $280,000

Average Rental Income: $2,500

Maryland’s real estate market is a promising investment choice. The state’s strong job market, diverse population, and proximity to major metropolitan areas like Washington, D.C., create a favorable environment for real estate investors. Furthermore, the presence of major corporations and prestigious institutions like Johns Hopkins University and the University of Maryland enhances its appeal, particularly for residential real estate ventures.

Delaware

Median Purchase Price: $285,000

Average Rental Income: $2,600

Delaware’s favorable tax environment, proximity to major cities like Philadelphia, and a diverse economy make it an attractive destination for property investors. With a range of housing options, from suburban neighborhoods to coastal communities, Delaware appeals to a broad spectrum of tenants and buyers, ensuring a steady demand in the real estate market.

Mississippi

Median Purchase Price: $205, 000

Average Rental Income: $1,600

Mississippi’s real estate market offers promising investment potential. The state’s low cost of living, affordable housing, and a variety of outdoor recreational activities make it an appealing destination for real estate investors. With prominent businesses and esteemed institutions like Mississippi State University, makes it a promising market for property investment.

Whether you’re an aspiring real estate investor or a first-time homebuyer in the U.S., America Mortgages is here to support your journey. If you’re eyeing a home in one of these cities, rest assured that even if you’re a non-U.S. citizen, you can qualify for up to 75% financing in all 50 states without needing a U.S. credit history. For U.S. expats, we’ve got you covered with up to 80% loan-to-value.

Every loan program we offer is tailor-made to our clients unique needs. With our deep understanding of the landscape, clientele, and processes, we stand as your trusted partner. Curious to learn more? Don’t hesitate to schedule a no-obligation call with one of our experienced loan specialists today.

Reach out to us at [email protected] to embark on your real estate journey with confidence.