I have the keys: the 10 most affordable housing markets in the US

For most potential home buyers, the real estate market looks bleak. Mortgage rates doubled from 3% of loans in early 2022 to more than 6% in 2023; Inventory shortages can lead to bidding wars in hot markets.

Is there good news for anyone other than real estate agents? In some markets, yes - but you have to be willing to move.

A new data analysis by mortgage company Rocket Homes and BestPlaces.net examined 383 metropolitan areas and assessed quality-of-life components such as crime rates, unemployment rates and environmental issues. The researchers then looked at their real estate markets, finding the median home price and expected monthly mortgage payment that would prove affordable for buyers earning $65,000 a year. State income and sales tax were also taken into account. The idea was to find 10 metro areas that demonstrate affordable housing potential, with mortgage payments not exceeding 30% of gross monthly income - a common rule of thumb.

Overall winner: Midwest.

Place Rating Median Home Price Estimate Monthly Mortgage Payment

1 Wausau, Wisconsin $228,770 $1482

2 Lafayette, Indiana $240,078 $1347

3 Columbia, Missouri $274,592 $1603

4 Grand Forks, North Dakota $255,143 $1531

5 Morgantown, West Virginia $212,961 $1162

6 Bangor, Maine $244,145 $1525

7 Pittsburgh, PA $208,446 $1330

8 Chambersburg, PA $252,282 $1537

9 Syracuse, New York $204,402 $1501

10 Lansing, Michigan $222,711 $1441

Wausau, Wisconsin came in first, with a median home price of just over $228,000 and an abundance of outdoor activities (skiing, hiking). Lafayette, Indiana gives those earning $65,000 a bit of a financial cushion, as it is well above the area's median income of $54,490. Others, such as Columbia, Missouri and Syracuse, New York, have plenty of entertainment and shopping options thanks to nearby universities.

The estimated mortgage payment is calculated based on an interest rate of 6.5 percent and a 20 percent down payment, along with the average property tax for the area. This does not include home insurance premiums.

While these figures are useful, "cheap" is always a relative term. In high-demand housing markets, it's not uncommon for buyers to pay above the home's asking price, an amount that may or may not be financed by a lender depending on the appraised value of the property. You could, for example, pay $275,000 for a home listed at $250,000. If it is only $250,000, you must write a check for the down payment ($50,000) plus the additional $25,000.

This list also does not take into account the inventory of homes, which can change daily. As of this writing, Wausau has only 26 single-family homes for sale.

The bottom line? It's still hard to buy a home, but these markets may give you a better starting point.