1. West Virginia – Low Prices, Limited Job Market
With median home prices well below the national average, West Virginia tops the list for mortgage-free living. Over half of homeowners own their homes outright, thanks to generational property transfers and affordable real estate. The cost of living is about 21% lower than the national average, making it easier to buy in cash. But job opportunities are sparse, especially outside of healthcare and education.
If you’re retired or work remotely, the trade-off might be worth it. The scenery is stunning, and small towns offer tight-knit communities. Just don’t expect a booming economy or fast-paced lifestyle. It’s peace and quiet—for a price.
2. Mississippi – Cheap Homes, Aging Infrastructure
Mississippi’s median home price hovers around $167,000, and more than half of homeowners are mortgage-free. Low property taxes and living costs make it possible to buy outright or pay off quickly. Rural areas especially see homes passed down through generations. But aging infrastructure and limited public services can be a challenge.
If you’re handy and self-sufficient, it’s doable. The pace is slow, and the culture is rich. But you’ll need to compromise on amenities and job access. It’s affordable—but not always convenient.
3. Arkansas – Budget-Friendly, Weather Risks
With median home prices around $200,000, Arkansas offers a realistic path to mortgage-free living. Many areas have homes under $150,000, especially in rural zones. Property taxes are low, and the cost of living is manageable. But tornadoes and flooding are real concerns in certain regions.
If you’re willing to invest in insurance and prep, it’s a solid option. The natural beauty and community spirit are strong. Just be ready for unpredictable weather and limited public transit. It’s cheap—but not carefree.
4. Louisiana – Affordable, But Vulnerable
Louisiana’s housing market is accessible, with median prices near $200,000. Many residents own homes outright, especially in rural parishes. Property taxes are low, and intergenerational homeownership is common. But hurricanes and flooding are frequent threats.
If you’re drawn to Southern charm and don’t mind prepping for storms, it’s doable. The culture is vibrant, and the food is unbeatable. But you’ll need to compromise on climate stability and infrastructure. It’s colorful—but complicated.
5. Iowa – Low Prices, Harsh Winters
Iowa’s housing market is among the most affordable in the Midwest, with homes ranging from $160,000 to $240,000. Even in Des Moines, prices are reasonable. High incomes and modest taxes help residents save and buy outright. But winters are long, and rural areas can feel isolated.
If you’re okay with snow and solitude, it’s a smart move. The quality of life is high, and the communities are welcoming. Just don’t expect year-round sunshine or urban buzz. It’s practical—but chilly.
6. Alabama – Southern Comfort, Limited Transit
Alabama’s median home price is around $210,000, and many residents buy homes in cash. Retirees especially benefit from low living costs and property taxes. The state’s strong community culture supports long-term homeownership. But public transportation is minimal, and healthcare access varies.
If you’re driving and DIY-minded, it’s a good fit. The lifestyle is relaxed, and the scenery is underrated. Just be ready to rely on your own wheels and resources. It’s warm—but not walkable.
7. Kentucky – Cheap Land, Sparse Services
Kentucky’s housing market is accessible, with median prices near $200,000. Rural areas offer even lower costs, making mortgage-free living realistic. Property taxes are low, and homes are often inherited. But public services and job options can be limited.
If you’re okay with a slower pace and fewer amenities, it’s a solid choice. The landscapes are lush, and the communities are close-knit. Just don’t expect high-speed internet or bustling nightlife. It’s peaceful—but pared down.
8. New Mexico – Scenic, But Sparse
New Mexico offers low property taxes and affordable housing, especially outside Santa Fe and Albuquerque. Many retirees and remote workers buy homes outright. The desert beauty and cultural richness are major draws. But healthcare and infrastructure can be inconsistent.
If you’re independent and drawn to the Southwest, it’s a great fit. The sunsets are stunning, and the vibe is laid-back. Just be ready for long drives and limited services. It’s tranquil—but remote.
9. North Dakota – Low Prices, Harsh Climate
North Dakota’s median home price is around $230,000, and rural areas offer even cheaper options. The oil and agriculture industries provide stable income, helping residents buy homes mortgage-free. But winters are brutal, and amenities are sparse.
If you’re tough and resourceful, it’s doable. The economy is steady, and the communities are resilient. Just be ready for snowdrifts and solitude. It’s affordable—but frosty.
10. Missouri – Accessible, But Uneven
Missouri’s median home price is about $230,000, and rural areas offer even lower costs. Many families pass down homes, creating pockets of mortgage-free living. The cost of living is low, and the culture is rich. But public services vary widely by region.
If you’re flexible and community-oriented, it’s a good bet. The state offers both city and country living. Just be ready for uneven infrastructure and unpredictable politics. It’s diverse—but inconsistent.
11. Indiana – Affordable, But Industrial
Indiana’s housing market is budget-friendly, with median prices around $265,000. Industrial and agricultural jobs provide stable income, helping residents buy homes outright. Rural areas offer homes under $150,000. But pollution and zoning quirks can be drawbacks.
If you’re pragmatic and value affordability, it works. The economy is solid, and the people are grounded. Just be ready for factory views and zoning surprises. It’s sensible—but gritty.
12. South Dakota – Low Taxes, Sparse Population
South Dakota’s lack of state income tax and affordable housing make mortgage-free living attainable. Agriculture drives the economy, and many homes are inherited. Rural areas offer homes under $200,000. But services and entertainment are minimal.
If you’re self-sufficient and love open skies, it’s ideal. The pace is slow, and the taxes are low. Just don’t expect nightlife or convenience. It’s serene—but spartan.
13. Texas (Rural) – Cheap Land, High Property Taxes
Texas offers affordable housing in rural areas, with homes under $200,000. The lack of state income tax helps, but property taxes are high. Many residents buy land and build modest homes mortgage-free. But services and infrastructure vary widely.
If you’re okay with DIY living and long drives, it’s doable. The culture is strong, and the land is vast. Just be ready for tax bills and independence. It’s big—but barebones.
14. Michigan (Rural) – Low Prices, Harsh Winters
Northern Michigan offers homes under $150,000, especially in rural areas. Many residents are mortgage-free thanks to generational ownership and low property taxes. The lakes are beautiful, and the pace is slow. But winters are long, and job options are limited.
If you’re hardy and love nature, it’s a win. The scenery is stunning, and the costs are low. Just be ready to shovel snow and drive far. It’s scenic—but seasonal.
This post 14 Places Where You Can Live Mortgage-Free in the U.S.—If You’re Willing to Compromise was first published on American Charm.
