1. Tennessee
Tennessee offers affordable homes in both rural and urban settings, with cities like Nashville and Chattanooga providing plenty of options under $200K, as you can find in Zillow. While Nashville may be more expensive than some of the other cities in the state, nearby areas like Murfreesboro still offer great value. Tennessee’s no state income tax policy is another attractive benefit for homeowners. It’s a state that offers a vibrant arts scene, beautiful nature, and real estate that won’t break your budget.
Towns like Knoxville and Clarksville also offer homes under $200K, with local amenities and a high quality of life. The housing market here has been quite stable, making it a good place for investment. Tennessee’s moderate climate and southern charm add to the state’s appeal. If you’re looking for a combination of affordable housing and a lively culture, Tennessee should definitely be on your radar.
2. Ohio
Ohio is full of hidden gems where homes are still affordable, even in 2025, according to Zillow. Cities like Cleveland and Akron have seen revitalization in recent years, yet the home prices remain very reasonable. In some neighborhoods, you can snag a cozy home for under $200K, and still be close to cultural attractions, good schools, and public transportation. Ohio’s economic growth has helped to keep housing prices lower compared to other states.
Outside of the big cities, towns like Toledo and Youngstown also offer incredible deals. These areas combine the charm of small-town living with proximity to larger cities, making it an attractive option for families. The state’s relatively low property taxes and solid infrastructure are other reasons why buying here makes sense. Ohio is a great choice if you’re looking for affordable housing and a balance of city and suburban living.
3. Arkansas
In Arkansas, you can find homes that are as beautiful as the natural surroundings – without breaking the bank. The state is home to a mix of mountain landscapes, rivers, and forests, all while offering some of the lowest property prices in the country. Whether you’re after a modest ranch-style home or a cozy bungalow, $200K goes a long way here. Little Rock, the state capital, still has several homes under $200K, according to Homes.com.
The affordability isn’t just in the big cities; towns like Fayetteville and Jonesboro offer stunning homes at a fraction of what you’d pay elsewhere. With low taxes and a cost of living far below the national average, it’s an ideal place for first-time homebuyers. Plus, the friendly vibe and welcoming locals make Arkansas a great spot to call home. If you want a blend of natural beauty and economic advantages, this state is worth considering.
4. Alabama
Alabama is another Southern state where real estate prices are still relatively low, especially in less urbanized areas. Cities like Birmingham, Huntsville, and Montgomery have options for homes under $200K on Realtor.com. The state’s mild weather, along with a mix of historical charm and modern conveniences, makes it appealing for many buyers. You’ll find plenty of cozy homes, many of which are nestled in quaint neighborhoods with character.
The cost of living in Alabama is exceptionally affordable, which makes homeownership within reach for many. Smaller towns like Mobile and Decatur also offer appealing properties under the $200K mark. Whether you’re seeking the hustle and bustle of a city or the tranquility of rural life, Alabama can cater to both. It’s a great option for anyone looking for affordable living in a state rich with culture and southern hospitality.
5. Indiana
Indiana is an underrated gem for homebuyers looking for affordable options. Cities like Indianapolis and Fort Wayne feature homes that won’t break your budget, especially in up-and-coming neighborhoods, according to Zillow. For under $200K, you can find larger homes with space to grow or even historic houses with character. Indiana’s economy is steadily improving, making it an appealing option for young professionals or growing families.
If you venture outside the cities, you can find even more affordable properties, with peaceful surroundings and room to spread out. Towns like Evansville and Lafayette are full of charm, with homes that still fit within that budget. The state’s property taxes are also reasonable, adding to the affordability factor. If you want a balance of city life and affordable housing, Indiana is an excellent place to explore.
6. Missouri
Missouri offers a range of affordable real estate options, especially in places like St. Louis and Kansas City. Both cities have revitalized areas where you can buy a home for under $200K, making it an ideal spot for those looking for a balance between urban living and affordable housing. You can find charming homes with spacious yards and access to plenty of amenities. Missouri also benefits from a low cost of living, which makes it easier to maintain a comfortable lifestyle.
In addition to the cities, towns like Springfield and Columbia offer excellent opportunities for homebuyers. These areas are known for their family-friendly atmosphere and affordable real estate markets. With an active job market and an expanding economy, Missouri is also a place where your investment could appreciate over time. Whether you’re looking to settle down in a city or a more rural area, Missouri offers a variety of options under $200K.
7. Kentucky
Kentucky is another state where home prices remain quite low, especially in smaller towns and rural areas. In cities like Louisville and Lexington, you can still find plenty of homes under $200K. These homes offer a mix of modern designs and historic charm, with many located in quiet neighborhoods. The state’s cost of living is also very affordable, which means you’ll get more for your money.
Kentucky is also a great option for those who enjoy outdoor activities, with plenty of parks and natural attractions nearby. Smaller towns like Bowling Green and Owensboro are filled with potential for affordable homeownership. The real estate market here is relatively stable, making it a great place to invest in a first home. If you’re drawn to the idea of living in a state with a relaxed pace of life, Kentucky may be the perfect fit for you.
8. Michigan
Michigan may be best known for its Great Lakes and urban hubs like Detroit, but it also offers surprisingly affordable homes in many areas. Detroit, in particular, has a real estate market that’s still recovering but offers some incredible deals for those willing to put in a little work. Even in more desirable parts of the state like Grand Rapids or Lansing, you can find homes under $200K. This is a great state for those who love the idea of owning a home near water or with plenty of green space.
Outside of the cities, Michigan’s rural areas offer incredible bargains. Towns like Kalamazoo and Traverse City feature homes with ample space, often with more acreage than what you’d find in larger urban centers. Plus, Michigan offers excellent schools and a relatively low cost of living. For buyers who appreciate a balance of nature, culture, and affordability, Michigan is hard to beat.
9. West Virginia
If you’re looking for affordable options in a state with a lot of natural beauty, West Virginia might be the answer. Many areas in the state offer homes well under $200K, especially in smaller towns. You can find charming properties in the Appalachian region, close to hiking and outdoor activities. Plus, the cost of living is low, which means your money can go even further here.
The state is also home to some quiet, tight-knit communities, making it ideal for those looking to escape busy city life. Cities like Morgantown and Charleston offer properties in this price range, with a great balance of modern amenities and a slower pace. With plenty of opportunities for first-time buyers, it’s worth considering. West Virginia is perfect for anyone craving both affordability and the outdoors.
10. Oklahoma
Oklahoma is known for its wide open spaces and affordable housing market. Cities like Oklahoma City and Tulsa feature homes well under the $200K mark, with plenty of options for first-time buyers. The state offers a mix of affordable suburban living and rural homes with lots of land. Additionally, Oklahoma’s cost of living is one of the lowest in the country, making it an appealing choice for those looking to stretch their dollar.
Outside of the cities, you’ll find beautiful properties with plenty of land for those seeking more space. Towns like Norman and Lawton offer great deals for buyers, with easy access to larger metropolitan areas. Oklahoma’s economy has been growing steadily, providing long-term stability for homeowners. With its affordability, diverse landscapes, and low taxes, Oklahoma is a great choice for those looking to buy without breaking the bank.
