Market Overview: North Carolina Housing Mid-Range
North Carolina ranks as a mid-range housing market, with a median home price of $360,000. The state's effective property tax rate of 0.66% is below the national average of 0.90% (about 26% lower than the average state), and annual homeowners insurance averaging $1,621 falls above the US average of $1,492 (about 9% higher than the average state).
These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in North Carolina. Below we break down a realistic purchase scenario using state-specific data.
📊 How North Carolina Compares to the Other 50 States
Rank 1 is the cheapest. Every row below uses the same 20% down, 6.5% APR and 30-year term as the rest of this page.
| Measure | North Carolina | Rank | Lowest of the 51 |
|---|---|---|---|
| Median home price | $360,000 | #26 of 51 | West Virginia ($225,000) |
| Effective property tax rate | 0.66% | #19 of 51 | Hawaii (0.29%) |
| Average homeowners insurance | $1,621/yr | #33 of 51 | Oregon ($893/yr) |
| Est. monthly payment | $2,153/mo | #23 of 51 | West Virginia ($1,326/mo) |
The same $2,153/month would cover the median-priced home in 22 other states, including West Virginia ($1,326/month) and Georgia ($2,138/month).
Within the South region, North Carolina has the #11 lowest median-price monthly payment of the 17 states there.
📍 North Carolina's Largest County: Wake County
Everywhere else on this page North Carolina is one set of numbers — one median price, one tax rate, one insurance premium. The U.S. Census Bureau's American Community Survey publishes the same kind of measures for individual counties, so here is North Carolina's most populous county — Wake County — from the 2020–2024 ACS 5-year estimates release.
| Wake County — 2020–2024 ACS 5-year estimates | Estimate |
|---|---|
| Population | 1,178,653 |
| Median home value (owner-reported) | $461,300 |
| Median real estate taxes paid (annual) | $3,260 |
| Effective property tax rate (taxes ÷ value) | 0.71% |
| Median household income | $105,768 |
Two things to keep in mind before you use these numbers. First, the Census asks owners what their home is worth: this is a five-year survey estimate, not the sale price of homes that changed hands, so it is not comparable with the sale-price figures elsewhere on this page. Second, 0.71% is the median tax bill divided by the median home value, which is a different calculation from the statewide effective rate in the comparison table above (that one weighs total taxes collected against total value).
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates (B01003 population; B25077 median home value; B25103 median real estate taxes paid; B19013 median household income). Retrieved 2026-09-24. Learn how the American Community Survey collects these estimates.
🏡 Purchase Example: Buying a $360,000 Home in North Carolina
Using the state's median home price of $360,000, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in North Carolina:
| Cost Component | Amount |
|---|---|
| Home Price | $360,000 |
| Down Payment (20%) | $72,000 |
| Loan Amount | $288,000 |
| Estimated Closing Costs (3.5%) | $12,600 |
| Total Cash Needed at Closing | $84,600 |
Monthly Payment (20% Down)
| Item | Monthly |
|---|---|
| Principal & Interest | $1,820 |
| Property Taxes (0.66%) | $198 |
| Homeowners Insurance | $135 |
| PMI (not needed at 20% down) | $0 |
| Total Monthly Payment | $2,153 |
Annual income needed (28% DTI): $93,000/yr
PMI Scenario: What If You Put Only 10% Down?
With a 10% down payment ($36,000), you'd have a loan of $324,000 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.85% of the loan annually:
| Item | 10% Down | 20% Down (savings) |
|---|---|---|
| Principal & Interest | $2,048 | $1,820 |
| Monthly PMI | $230 | $0 |
| Total PITI+PMI | $2,610 | $2,153 |
The lower down payment costs you an extra $457/month (P&I + PMI). You would need $112,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.
First-year interest: In year one, $18,625 of your payments go to interest alone. Over the full 30-year term, you'll pay $367,328 in total interest.
💰 State-Specific Cost Notes for North Carolina
Property taxes in North Carolina are 0.66%, meaning about $2,376/year ($198/month) on the median-priced home.Homeowners insurance in North Carolina averages $1,621/year ($135/month), about 9% above the national average of $1,492.
Closing costs in a mid-range market like North Carolina typically run 2%–4% of the purchase price — roughly $12,600 on a $360,000 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.
Monthly Payment on a $360,000 Home in North Carolina
With a standard 20% down payment ($288,000 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $2,153.
Monthly Payment Breakdown (PITI)
| Component | Monthly Cost | Annual Cost |
|---|---|---|
| Principal & Interest | $1,820 | $21,840 |
| Property Taxes (0.66% est.) | $198 | $2,376 |
| Home Insurance | $135 | $1,620 |
| Total Monthly Payment | $2,153 | $25,836 |
Income Required in North Carolina
Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $93,000 to comfortably afford the median-priced home in North Carolina with 20% down at 6.5%.
How Interest Shapes Your Payments
In your first year, approximately $18,625 goes toward interest alone. Over the full 30-year term, you'll pay a total of $367,328 in interest.
Amortization Schedule — First 10 Years
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| Year 1 | $3,219 | $18,625 | $284,781 |
| Year 2 | $3,435 | $18,410 | $281,346 |
| Year 3 | $3,665 | $18,180 | $277,682 |
| Year 4 | $3,910 | $17,934 | $273,772 |
| Year 5 | $4,172 | $17,672 | $269,600 |
| Year 6 | $4,451 | $17,393 | $265,148 |
| Year 7 | $4,749 | $17,095 | $260,399 |
| Year 8 | $5,068 | $16,777 | $255,331 |
| Year 9 | $5,407 | $16,437 | $249,924 |
| Year 10 | $5,769 | $16,075 | $244,155 |
* Full 30-year amortization available in our interactive calculator.
❓ Frequently Asked Questions — Buying a Home in North Carolina
How much income do I need to buy a house in North Carolina?
With the median home price in North Carolina at $360,000 and a 20% down payment, you need roughly $93,000/year based on the 28% front-end DTI rule (total monthly housing costs of $2,153). If you put down 10%, the income requirement rises to about $112,000/year due to the higher loan amount and PMI.
What's the minimum down payment in North Carolina?
While 20% down ($72,000) avoids PMI, many North Carolina buyers opt for lower down payments. FHA loans require as little as 3.5% ($12,600), and conventional loans can go as low as 3%–5% ($10,800–$18,000). However, a 10% down payment ($36,000) would cost you $2,610/month — about $457 more than 20% down — due to PMI and a larger principal.
What are property taxes like in North Carolina?
North Carolina's effective property tax rate is 0.66%, which is below the national average of 0.90% (about 26% lower than the average state). On a $360,000 home, you'd pay approximately $2,376/year in property taxes ($198/month). That lower tax burden helps keep monthly costs more manageable.
How much is homeowners insurance in North Carolina?
The average annual premium in North Carolina is $1,621, which is above the US average of $1,492 (about 9% higher than the average state). That is close to the middle of the pack, so insurance should not swing your budget much either way. This adds $135/month to your payment.
What are the total closing costs for a home in North Carolina?
On a $360,000 home in North Carolina, expect to pay about $12,600 in closing costs. Combined with a 20% down payment ($72,000), you'd need approximately $84,600 in cash at closing. First-time buyers in North Carolina may qualify for down payment assistance programs or reduced closing costs through local housing authorities — check your state housing agency for available grants and low-interest loan programs.
Compare North Carolina With Nearby States
Buyers relocating within the South compare these markets most often. Every figure uses the same model as this page — each state's median home price, 20% down, 6.5% APR on a 30-year fixed loan, plus that state's property tax rate and average insurance premium — so the rows are directly comparable.
| State | Median Price | Est. Monthly PITI | Avg. Insurance |
|---|---|---|---|
| Georgia | $349,900 | $2,138/mo | $1,655/yr |
| Tennessee | $345,000 | $2,018/mo | $1,492/yr |
| Texas | $340,000 | $2,316/mo | $2,397/yr |
| Florida | $384,900 | $2,420/mo | $2,677/yr |
| South Carolina | $334,000 | $1,956/mo | $1,571/yr |
| Delaware | $401,750 | $2,304/mo | $1,103/yr |
| Virginia | $422,000 | $2,519/mo | $1,332/yr |
| Maryland | $432,500 | $2,635/mo | $1,392/yr |
| Kentucky | $275,000 | $1,673/mo | $1,359/yr |
| Alabama | $269,000 | $1,589/mo | $1,748/yr |
| Mississippi | $263,500 | $1,619/mo | $1,907/yr |
| Arkansas | $258,000 | $1,570/mo | $1,740/yr |
At $2,153/month for North Carolina's median home, North Carolina sits above the South average of $2,063/month for the states listed here.
🧮 Try the Interactive Calculator
Adjust the down payment, interest rate, or loan term — see how your payment changes in real time.
Open Full Calculator →📊 All Mortgage Calculators
Choose the tool that matches your situation — or use them all to build a complete picture.
📖 Recommended Reading
Disclaimer: This is an estimate for informational purposes only. Actual mortgage payments depend on your credit score, exact interest rate, property taxes, insurance premiums, PMI, and other factors. Sources: Zillow Research, median sale price, all homes, July 2026 (home values); Tax Foundation 2024 (state effective property tax rates); NAIC 2022 (statewide average HO-3 homeowners insurance premiums). Consult a qualified mortgage professional for personalized advice. See our full Disclaimer.