Mississippi has the lowest median home price of any state in the nation at approximately $186,000, making it one of the most accessible markets for entry-level homebuyers. The state's property tax rate of 0.81% is below average, and while homeowners insurance rates have risen due to Gulf Coast storm risk, they remain lower than coastal neighbors Florida and Louisiana. Jackson is the state capital and largest city, while the Gulf Coast — Gulfport, Biloxi, and Pascagoula — serves the defense and gaming industries.
Calculate Your Monthly Payment
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Select a program to apply FHA/VA/USDA rules.
Funding fee is often financed into the loan.
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20.0% of home price
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Used to estimate potential Year‑2 escrow shock if taxes reset after purchase.
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Used for Conventional PMI estimates and FHA minimum down rules
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Extra payments reduce balance faster and can end PMI sooner.
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Principal & Interest • Tax • Insurance • PMI • HOA
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Note: This is an estimate. Tax timing, exemptions, and escrow rules vary by county and lender. Always verify with your county assessor and your lender’s escrow analysis.
Extra Payment Savings
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Disclaimer: Results shown are estimates for educational purposes only and do not constitute financial, tax, legal, or investment advice. Actual payments vary based on lender, credit score, loan type, and local assessments. Consult a licensed mortgage professional for your specific situation.
Mississippi Mortgage Calculator Guide
Buying a home in Mississippi requires understanding local costs. The median home price in the state sits around $186,000, which means your down payment and loan amount will heavily dictate your monthly expenses. Because Mississippi has an average property tax rate of 0.81%, factoring this into your monthly mortgage payment is essential for an accurate budget.
Beyond principal and interest, homeowners insurance in Mississippi averages $2,800 per year. Local weather risks and property age can push this number higher. By using our pre-loaded local averages, you get a realistic view of your true housing costs rather than just a basic principal calculation.
If you put down less than 20%, you will also need to pay Private Mortgage Insurance (PMI). Adjust the down payment field above to see exactly how your PMI drops off once you reach that 20% equity threshold in Mississippi.
Mississippi's average property tax rate of 0.81% is below the national average of 1.07%. The state offers a generous homestead exemption that exempts the first $7,500 of assessed value from ad valorem taxes for primary residences, and provides additional tax relief for homeowners 65 and older. On a $186,000 home, annual property taxes average approximately $1,507 — among the lower annual bills in the Southeast.
Frequently Asked Questions
Mississippi has the lowest median home price in the nation at approximately $186,000. Jackson averages below $150,000, the Gulf Coast cities range from $200,000-$220,000, and Hattiesburg is near $190,000. Mississippi represents the absolute floor of US homeownership costs for buyers in the market.
Mississippi's average property tax rate is 0.81%, below the national average. The state offers a homestead exemption on the first $7,500 of assessed value for primary residences, with additional relief for seniors. On a $186,000 home, annual taxes average approximately $1,507.
The Mississippi Home Corporation (MHC) offers the Smart6 Loan Program with a 30-year fixed-rate mortgage and 6% down payment assistance for qualifying buyers. The program works with FHA, VA, USDA, and conventional loans and is available statewide through approved lenders.
Mississippi offers exceptional cash-flow potential for rental property investors due to very low acquisition costs and reasonable rent-to-price ratios. However, long-term appreciation has been limited compared to other states. For primary residence buyers, Mississippi's affordability is unmatched nationally, but economic opportunity, particularly in Jackson, is a significant consideration.
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