MoneyLion identified 35 housing markets where home values are at least $50,000 below their state averages.
Lower home prices don’t always mean a more affordable move, so buyers should consider local incomes, job opportunities, property taxes, insurance, and other costs.
Experts advise buyers to stick to their budgets, compare buying with renting, and be cautious about adjustable-rate mortgages.
Buying a home can feel out of reach when home prices and mortgage costs make it harder to stay within budget. But that doesn't mean every housing market is equally expensive.
Some cities offer a more affordable alternative to their state's typical home prices, giving buyers new places to consider. MoneyLion recently identified 35 potential hidden gem housing markets based on home values, estimated mortgage costs, household incomes and livability.
ConsumerAffairs spoke with Andrew Murray, lead researcher at Gen Digital, about the findings and what homebuyers should know as they search for a place they can afford.
Methodology
To identify the best hidden-gem housing markets of 2026, MoneyLion analyzed cities among the country’s 250 largest housing markets. Using data from the Zillow Home Value Index, researchers selected cities where average single-family home values were at least $50,000 below their state’s average. Cities also needed a livability score of at least 70, based on AreaVibes data, to remain in the ranking.
MoneyLion then estimated mortgage costs for each city, assuming a 15% down payment and using the national average 30-year fixed mortgage rate from Freddie Mac. Researchers scored and weighted four factors: median household income, average mortgage cost, the difference between local and statewide home values, and livability.
Home-value differences and livability each received a weight of 2.00, while household income and mortgage costs each received a weight of 1.00. The scores were combined to determine the final ranking, using data collected through September 23, 2026.
Key findings: Where buyers may find more affordable homes
MoneyLion’s ranking highlights a wide range of housing markets where home values are lower than their state averages, although affordability varies considerably by location.
Some cities offer substantially lower home values than their state averages. Visalia, California, ranked second, with an average home value of $400,447 — $388,672 below California’s statewide average. Springfield, Massachusetts, also stood out, with average home values $378,190 below its state average.
The most affordable markets have estimated mortgage costs below $1,000 a month. Akron, Ohio, had the lowest average home value on the list at $139,774. With a 15% down payment, MoneyLion estimated annual mortgage costs at $9,437, or about $786 per month. Lansing, Michigan; Macon, Georgia; and Baltimore, Maryland, were the other three cities with average home values below $200,000.
Not every hidden gem comes with a low monthly payment. Eight cities had estimated monthly mortgage payments above $2,000. Roseville, California, was the only market with an estimated payment above $3,000, at approximately $3,659 per month.
Income is another important part of the affordability picture. Erie, Pennsylvania; Akron, Ohio; Rochester, New York; and Syracuse, New York, were the four markets on the list with median household incomes below $50,000 a year. This highlights why buyers should consider local earnings alongside home prices and mortgage costs.
Overall, the findings suggest that buyers willing to look beyond the most expensive markets in their states may find more attainable home prices. However, the ranking is a starting point rather than a guarantee of affordability, since individual budgets and the full costs of homeownership will vary.
The full list
Here’s a look at all 35 hidden gem markets from MoneyLion’s research:
Worcester, MA
Visalia, CA
Pensacola, FL
Springfield, MA
Syracuse, NY
Baltimore, MD
Tallahassee, FL
Spokane, WA
Buffalo, NY
Jacksonville, FL
Pittsburgh, PA
Norfolk, VA
Rochester, NY
Akron, OH
Albany, NY
Trenton, NJ
Providence, RI
Saint Paul, MN
Erie, PA
Milwaukee, WI
Sacramento, CA
Richmond, VA
Vancouver, WA
Pueblo, CO
Schenectady, NY
Lubbock, TX
Roseville, CA
Lansing, MI
El Paso, TX
Greensboro, NC
Brownsville, TX
Macon, GA
Tacoma, WA
San Antonio, TX
Corpus Christi, TX
Should first-time homebuyers target these areas?
Murray said it may be worth it for first-time homebuyers to look in these hidden gem markets, but there are some caveats: only if the local job market, services, and lifestyle fit your needs.
“These markets may offer lower purchase prices and mortgage payments than their statewide averages,” he said. “However, affordability alone shouldn’t determine the move. One needs to consider employment opportunities, commute costs, schools, healthcare, safety, family support, and whether you expect to stay at least several years.”
Some other factors for any homebuyer considering these markets include property taxes and homeowners insurance, HOA fees, and transportation costs if jobs or services are far away.
Murray explained that there are a multitude of factors one needs to consider before moving, and MoneyLion’s research is more highlighting where home prices are lower than the average.
Will demand increase?
With mortgage rates so high right now, is it likely that homebuyers will soon be priced out of these hidden gem markets?
Murray says it’s a possibility, but not a guarantee.
“Markets that offer relative affordability may attract remote workers, investors, retirees, and buyers priced out of larger cities,” he explained. “Buyers should treat the ranking as a snapshot, not a prediction of future appreciation.”
Advice for homebuyers
Buying a home may feel out of reach for many consumers right now, but Murray has some advice for those who are feeling helpless on the house hunt. Here are his best tips:
Never overstretch your budget
Always look at what a total monthly cost will be when you purchase a home (mortgage, hoa, property tax, insurance, etc.)
Compare buying with renting after including maintenance, taxes, insurance, and transaction costs
Be wary of signing onto adjusted rate mortgages as, yes the rate could fall, but it could also just as easily rise.