How much house can I afford on $40,000 in Minnesota?
About $138,000 with 20% down ($111,000 with an FHA loan), using Minnesota's 1.04% property tax rate.
That is $210,484 less than the typical Minnesota home ($348,778), so on $40,000 you'd look at cheaper areas or a smaller home. The payment of $933 covers $744 principal and interest, $120 property tax and $69 insurance.
Counties in Minnesota you can afford on $40,000
On $40,000 the typical home is out of reach in every Minnesota county tracked by Zillow — the cheapest is Kittson County at $145,496.
Assumes a 30-year fixed loan at 7.11%, property tax of 1.04% of the home value a year, homeowners insurance of 0.6% a year, PMI of 0.5% of the loan a year when the down payment is under 20%, and FHA mortgage insurance of 0.55% a year plus a 1.75% upfront premium added to the loan. Your rate, taxes and insurance will differ.
Other salaries in Minnesota
Frequently asked questions
How much house can I afford on $40,000 in Minnesota?
About $138,000 with 20% down at 7.11%, keeping the payment (with Minnesota's 1.04% property tax and insurance) under $933 a month.
Is $40,000 enough to buy a house in Minnesota?
Not the typical home: the typical Minnesota home is worth $348,778 (Zillow, September 2026) and $40,000 supports about $138,000. 0 of 87 counties are within budget.