18 States Where You Can Buy a Luxury Home for Under $500K
Think a luxury home is out of reach? Not everywhere. In 18 states, you can still find one for under $500,000.
According to a new analysis from MoneyLion, using Zillow data from February 2026, that price point is still within reach in select markets. The study assumes buyers put down either 20% or 10% and secure a 30-year fixed mortgage at 6.46%, based on recent data from Freddie Mac. It’s worth noting the estimates don’t include additional costs like property taxes, HOA fees or private mortgage insurance (PMI).
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So, where can you actually make it work? The report highlights 18 states where luxury home values fall below the $500,000 threshold, along with the income needed to afford monthly payments under those assumptions.
You won’t see high-cost states like California, Hawaii or Massachusetts on the list. Instead, it’s dominated by more affordable regions — including nine states in the Midwest, seven in the South, and one each in the Northeast and West.
Key Findings
Average luxury home values in the 18 states on the list range from $313,000 to just shy of $500,000. West Virginia has the lowest average luxury home value.
Income needed to comfortably afford a mortgage after a 20% downpayment ranges from $67,556 (West Virginia) to $106,981 (New Mexico).
With a 10% down payment, needed incomes range from $76,000 in West Virginia to $120,353 in New Mexico.
For some perspective, average luxury home values in California and Hawaii this year come in at more than $1.4 million. Massachusetts has the third-highest figure at just over $1 milliion.
Here’s a breakdown of the 18 states that come in below $500,000.
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1. West Virginia
Average luxury home value: $313,038
Income needed after 20% down: $67,556
Income needed after 10% down: $76,001
2. Mississippi
Average luxury home value: $330,522
Income needed after 20% down: $71,329
Income needed after 10% down: $80,245
3. Louisiana
Average luxury home value: $354,064
Income needed after 20% down: $76,410
Income needed after 10% down: $85,961
4. Oklahoma
Average luxury home value: $368,241
Income needed after 20% down: $79,469
Income needed after 10% down: $89,403
5. Kentucky
Average luxury home value: $384,223
Income needed after 20% down: $82,918
Income needed after 10% down: $93,283
6. Arkansas
Average luxury home value: $387,370
Income needed after 20% down: $83,598
Income needed after 10% down: $94,047
7. Iowa
Average luxury home value: $401,415
Income needed after 20% down: $86,629
Income needed after 10% down: $97,457
8. Indiana
Average luxury home value: $410,493
Income needed after 20% down: $88,588
Income needed after 10% down: $99,661
9. Ohio
Average luxury home value: $414,554
Income needed after 20% down: $89,464
Income needed after 10% down: $100,647
10. Alabama
Average luxury home value: $418,685
Income needed after 20% down: $90,356
Income needed after 10% down: $101,650
11. Michigan
Average luxury home value: $436,587
Income needed after 20% down: $94,219
Income needed after 10% down: $105,996
12. Missouri
Average luxury home value: $436,758
Income needed after 20% down: $94,256
Income needed after 10% down: $106,038
13. Kansas
Average luxury home value: $442,932
Income needed after 20% down: $95,588
Income needed after 10% down: $107,537
14. North Dakota
Average luxury home value: $445,334
Income needed after 20% down: $96,107
Income needed after 10% down: $108,120
15. Nebraska
Average luxury home value: $453,812
Income needed after 20% down: $97,936
Income needed after 10% down: $110,178
16. Illinois
Average luxury home value: $486,810
Income needed after 20% down: $105,057
Income needed after 10% down: $118,190
17. Pennsylvania
Average luxury home value: $492,169
Income needed after 20% down: $106,214
Income needed after 10% down: $119,491
18. New Mexico
Average luxury home value: $495,721
Income needed after 20% down: $106,981
Income needed after 10% down: $120,353
Methodology: For this piece, MoneyLion looked at luxury home values (typical values for homes within the 65th to 95th percentile range for a given region) by state. MoneyLion used Zillow’s February 2026 data to determine where it is easiest to afford a luxury home in every state. To determine this, MoneyLion assumed a person/household would put a down payment of either 20% or 10% towards their home. With these down payment figures calculated, MoneyLion calculated monthly and annual mortgage payments assuming a 30-year fixed rate at 6.46% interest as sourced from Freddie Mac on April 2, 2026, with no property tax, HOA, or PMI included in mortgage calculations. With the mortgage payments determined, MoneyLion was also able to provide the minimum incomes needed to comfortably afford mortgage payments, following the rule that no more than 28% of pre-tax income should go towards your mortgage. All data was collected and is up to date as of April 2, 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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