10 Best Cities Where You Can Buy a House for Under $100K
Did you know buying homes for less than 100,000 in the US in 2024 is possible? Don’t worry if you didn’t; you’re in the majority on this one. Most people from the US and around the world are not aware of this. Our goal is to change that, starting with this article.
We’ll share with you a list of the top 10 US cheapest cities to buy a house in under 100k. But, before we do that, let’s first review some vital information we at NRI believe you should know before buying a house at such a low price point.
3 Main Things to Consider When Looking at Houses Under 100K
Similar to what we shared in our article about houses under 200k, homes under 100k also come with their own sets of issues. There’s a reason why certain properties sell for two or three times less than the average house price in the US, and it’s never good. Realistically, you won’t avoid encountering problems when looking at houses under 100k, but you can at least try to avoid some of them.
And, as our idea for this article is to inform you, we at NRI feel obligated to share with you a couple of the main things you should be aware of before buying a property worth 100k.
1. High Crime Rates
Real estate prices are often directly connected to different community factors (e.g., economic health, future potential, jobs, school district quality, etc.). One of those factors, some would argue the most important one, is crime rates. More often than not, houses under 100K will be located in places with higher-than-average crime rates. So, before signing your name on the dotted line, make sure to check out the crime rates in the neighborhood you’re looking to purchase a property in.
2. How Old the Property Is
Property age is an important factor that can determine the asking price for a piece of real estate. And, when it comes to houses under 100k, your main goal should be to evaluate how much of that price tag is related to the condition of the property.
Make sure to perform a detailed house inspection, and don’t forget to check:
- Electrical and heating installations
- Plumbing
- Foundation
- Flooring
- Roof
- Drainage
- Gutters
Also, make sure to inspect the house for mold. After all of that, try to formulate a picture of how much money you’ll need to invest in the property. Let’s not kid ourselves, you’ll probably need to put some money into it to improve its condition and make it ready for your family or tenants.
3. The Location of the Property
Houses under 100k will rarely be located in cities or places that people actually want to move to (i.e., prime locations). Now, the truth is that a prime location depends on the people and is subject to change. For example, in the past couple of years, more than the usual number of US citizens decided to move to Florida, which positively impacted the state’s real estate market and made it one of the best places to purchase rental property in the US. So, before buying a house under 100k, check population growth and migration rates, as they are one of the best indicators of viability and future potential (in regards to the real estate market). Realistically, for the asking price of under 100k, these numbers will probably be less than ideal (sometimes even going into negatives). Now, with that out of the way, let’s move onto our list.
Houses Under 100K: 10 Cheapest Places to Buy a House in the US
With the average house cost in the US being almost half a million, it seems impossible to imagine that houses under 100k can be found there. But they can. To prove that, here’s a list of some of the cheapest places to buy a house in the US:
1. Fort Wayne, Indiana
Fort Wayne is Indiana’s second-most populated city (after Indianapolis) and is considered the state’s cultural and economic center in the northeast. Built in the late 18th century by the US army, it was founded on the remnants of an old trading post, originally called Fort Miami.
The main economic driver is the military-industrial complex, with companies such as BAE Systems, Raytheon, and L3Harris partially operating from Fort Wayne. The most popular neighborhoods where you can find houses under 100k are:
Average home price — $231,155
Average rent — $1,107
Average property tax rate — 0,850% (around $1,980 per year)
Median household income — $66,758
Population — 267,927
Fort Wayne Crime Rate — 26,54 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
2. Columbia, South Carolina
Columbia is the capital and the second-most populous city in South Carolina. Founded in 1786, it was selected as the seat of the state’s government due to its central location.
Colombia is home to many different industries, with the most prominent of them being:
- Manufacturing
- Healthcare
- Agriculture
Due to the state’s moderate climate, agribusinesses are thriving and bringing in around 32 billion dollars per year together with forestry. The city is also known for the world-famous Colombia University, ranked as the 34th best school in the world.
The top neighborhoods in Colombia where you can find houses under 100k are:
Average home price — $228,201
Average rent — $1,398
Average property tax rate — 0,620% (around $1,450 per year)
Median household income — $54,095
Population — 139,698
Columbia Crime Rate — 35,32 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
3. Indianapolis, Indiana
Indianapolis, also known as the “Crossroads of America” and “Indy”, is the capital of Indiana and the state’s most populated city. Throughout US history, Indianapolis played a vital role as a center for transportation and commerce, although that importance has been lessened in recent decades.
The city is home to many different industries and is a seat of three Fortune 500 companies:
- Elevance Health
- Eli Lilly and Company
- Corteva
It has plenty of stable jobs on offer and is a good place for real estate investors and those interested in buying their primary residence. The main drawback is the city’s crime rate, which is almost double the national average. The best neighborhoods where you can find homes for sale under 100k are:
Average home price — $218,591
Average rent — $1,195
Average property tax rate — 0,850% (around $1,850 per year)
Median household income — $59,110
Population — 880,621
Indianapolis Crime Rate — 43,82 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
4. Little Rock, Arkansas
Little Rock, the largest city in Arkansas, became the state’s capital in 1821. The city is a cultural hub of the region and is home to several major institutions, like:
- Arkansas Museum of Fine Arts
- Arkansas Repertory Theatre
- Arkansas Symphony Orchestra
- Mosaic Templars Cultural Center
On the business and industry side, Little Rock hosts four Fortune 500 companies:
- Walmart
- Tyson Foods
- Murphy USA
- J.B. Hunt Transport Services
The largest industry in Little Rock is the agricultural industry, which generates around 16 billion dollars per year. The top neighborhoods in Little Rock where you can find houses under 100k are:
Average home price — $211,227
Average rent — $1,029
Average property tax rate — 0,680% (around $1,430 per year)
Median household income — $58,697
Population — 202,864
Little Rock Crime Rate — 72,08 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
5. Iowa City, Iowa
Iowa City, with a population of around 75,000, is the fifth most populated city in the state. It’s home to the prestigious University of Iowa and is the location of the famous Iowa Writers’ Workshop.
The most prominent industries in Iowa City and its metropolitan area include:
- Bioscience
- Advanced manufacturing
- Education Technology
The best neighborhood to look for homes under 100k is Broadway.
Average home price — $290,584
Average rent — $1,416
Average property tax rate — 1,650% (around $4,750 per year)
Median household income — $54,879
Population — 75,233
Iowa City Crime Rate — 23,26 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
6. Baton Rouge, Louisiana
Baton Rouge is the capital city of Louisiana, founded in 1699. The city had a tumultuous history and was ruled over by many different governments and nations, including the British, French, and Spanish crowns.
Large corporations that have offices and provide jobs to the residents of Baton Rouge include:
- Exxon Mobil
- 3M Company
- Laboratory Corporation of American Holdings
- Sales Force
- Meta
The best neighborhoods where you can find homes for less than 100,000 are:
Average home price — $221,150
Average rent — $1,218
Average property tax rate — 0,520% (around $1,150 per year)
Median household income — $50,155
Population — 221,453
Baton Rouge Crime Rate — 70,18 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
7. Buffalo, New York
Buffalo, the second-most populated city in the state of New York, is located near the US-Canada border. Established in 1802, it served as a railroad and transportation hub until the end of the 19th century. The city is home to a single Fortune 500 company, M&T Bank, which generates annual earnings of around 6 billion dollars.
Between 2021 and 2022, Buffalo’s population grew by around 0.25%, and the median income grew by almost 10%. Although the city has higher crime rates than the national average, the secure job market and steady increase in population and median income make Buffalo an exciting location for real estate investors and those looking to purchase their primary residence. The best part is that Buffalo is a place where you can find homes under 100k. And the best neighborhoods to look for those affordable properties are:
Average home price — $223,805
Average rent — $1,372
Average property tax rate — 2,270% (around $5,000 per year)
Median household income — $46,184
Population — 276,486
Buffalo Crime Rate — 40,88 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
8. Milwaukee, Wisconsin
Milwaukee, founded in 1846, is the most populous city in the state of Wisconsin. Apart from being the center of German-American culture, the city is also home to many famous breweries, a Major League baseball team, the Milwaukee Brewers, and an NBA team, the Milwaukee Bucks.
Milwaukee is an excellent place for real estate investors, both experienced and beginners. The city has many affordable properties on offer and is landlord-friendly, which makes a huge difference for those interested in purchasing rental properties. The best neighborhoods where you can find houses under 100k are:
Average home price — $203,691
Average rent — $1,462
Average property tax rate — 1,750% (around $3,500 per year)
Median household income — $49,733
Population — 563,305
Milwaukee Crime Rate — 51,06 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
9. Kansas City, Kansas
Kansas City is the 3rd most populated city in the state of Kansas with around 150,000 residents. It’s home to the General Motors plant, where some of the most popular American cars are produced (e.g. Chevrolet Malibu, Cadillac XT4).
Officially formed in 1886, the city played an important role throughout US history. For a long time, it served as a transportation hub due to its central location. Today, the city is a host to many different industries, with the most prominent of them being:
- Transportation and distribution
- eCommerce
- Manufacturing
- Technology
- Financial industry
Those looking for homes for sale under 100k should definitely check out the Boulevard neighborhood.
Average home price — $185,067
Average rent — $1,063
Average property tax rate — 1,550% (around $2,870 per year)
Median household income — $56,120
Population — 155,000
Kansas City Crime Rate — 2,41 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
10. Detriot, Michigan
Last but not least, we finish up our list of places where you can find a house under 100k with Detroit — probably the cheapest place to buy a house in the US. Up until the 1970s, when the city experienced a sharp economic decline, Detroit was a powerhouse of the US industry (specifically the motor industry). It was one of the best places for manufacturing in the entire country.
Recent data indicates that the city is in its recovery phase, both economically and in terms of population growth. This is good news for real estate investors looking for affordable properties with excellent revenue and appreciation potenital.
The top neighborhoods in Detroit where you can find houses under 100k are:
Average home price — $73,843
Average rent — $1,212
Average property tax rate — 1,310% (around $1,050 per year)
Median household income — $37,761
Population — 620,376
Detroit Crime Rate — 66,09 per 1000 residents
National Average Crime Rate — around 22,5 per 1000 residents
Mortgages
Mortgages
And Tax Filings
Agents
