Quick answer
The median North Dakota home is valued at $266,100 and costs about $2,073 a month with 10% down at the 7.24% national average rate — $1,093 more than the median rent of $980. Homeowners can claim the state’s Primary Residence Credit of up to $1,600 a year against property tax, with no age or income limit. There is no transfer tax, and NDHFA adds 3% of the first mortgage toward the down payment for eligible buyers who put in $500 of their own.
Key facts
61.2%
Homes lived in by their owners
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
0.96%
Effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
3%
NDHFA DCA or Start (share of loan)
North Dakota Housing Finance Agency: Homeownership · Oct 29, 2026
$105,730
FirstHome income limit (1–2 people)
North Dakota Housing Finance Agency: Income and purchase price limits · Jun 15, 2026
Cheap rent, fewer owners
North Dakota’s median gross rent of $980 a month is the 2nd-lowest among the states and DC, and only 61.2% of occupied homes are lived in by their owners — the 5th-lowest among the states and DC (the US share is 65.3%). Cheap rent raises the bar for buying: the median home costs $1,093 more a month than the median rent before you count maintenance, so owning pays off mainly through equity and staying put long enough to recover buying and selling costs.
The rent vs buy calculator opens with North Dakota’s median price and rent, so you can see how many years it takes for owning to come out ahead at today’s rates.
The Primary Residence Credit
Since the 2025 legislative session, North Dakota pays a Primary Residence Credit of up to $1,600 a year toward the property tax on your home. There are no age or income restrictions, a household can claim one credit, and you apply each year — the 2026 application window ran from January 1 to April 1, through the Office of State Tax Commissioner. If you buy during the year, put the next application window on your calendar.
Against a tax bill at the state’s effective rate of 0.96% (above the US 0.89%), the credit is large. On a home at the median value, property tax is about $2,555 a year, and the full credit would cover about 63% of it.
The monthly cost, before and after the credit
$266,100 home, 10% down, 30-year fixed at 7.24%
| Part of the payment | Monthly |
|---|---|
| Principal and interest on $239,490 | $1,632 |
| Property tax at 0.96% a year | $213 |
| Homeowners insurance at the national $4.90 per $1,000 (Freddie Mac) | $109 |
| PMI (midpoint of Freddie Mac’s range) | $120 |
| Total | $2,073 |
| Primary Residence Credit, spread over 12 months | −$133 |
| Effective cost after the credit | $1,940 |
The credit row assumes the full credit applies to this bill. If you pay property tax through escrow, ask your servicer how the credit will show up in your escrow account.
On North Dakota’s median household income of $77,871, Freddie Mac’s 30% guideline allows $1,947 a month — about $250,000 of home with 10% down, $16,100 below the median value. Counting the credit, the same budget stretches to roughly $267,000. Try your own numbers in the mortgage payment calculator.
NDHFA loans and down-payment help
The North Dakota Housing Finance Agency (NDHFA) lends through participating lenders. Every program needs a $500 cash investment from the buyer and the home must be your principal residence.
| Program | For | Down-payment help |
|---|---|---|
| FirstHome | First-time buyers (no home owned in the past 3 years), income up to $105,730 for one or two people, price up to $500,000 | DCA or Start |
| HomeAccess | Single parents, veterans, and households with a disabled member or one 65 or older, under the same limits | DCA or Start |
| North Dakota Roots | Previous homeowners; no income or price limits | Start only |
DCA and Start each give 3% of the first mortgage as a credit toward the down payment, closing costs and prepaid items; they can’t be combined with other assistance, and DCA has its own county income limits and requires a homebuyer education certificate. On an FHA loan for the median home, 3% of the $261,280 loan is about $7,838, against a $9,314 minimum down payment. The median home is below the FirstHome price limit, and the state’s median household income is below the one- and two-person FirstHome limit. Compare NDHFA with federal options in the first-time buyer programs guide.
Closing in North Dakota: no deed tax
North Dakota has no real estate transfer tax, so neither side pays a deed tax at closing; county recording fees still apply. Most of what you pay is lender charges, title insurance and prepaid taxes and insurance — $5,322–$13,305 on the median home at the CFPB’s 2%–5% rule of thumb. Itemize them with the closing cost estimator.
Frequently asked questions
What is the North Dakota Primary Residence Credit?
A state credit of up to $1,600 a year toward the property tax on your primary residence. There are no age or income limits; you apply each year with the Office of State Tax Commissioner.
Does North Dakota have a transfer tax on real estate?
No. North Dakota has no real estate transfer tax, so buyers and sellers pay only recording fees and their usual closing costs.
What down payment assistance does North Dakota offer?
NDHFA’s DCA and Start programs give 3% of the first mortgage toward the down payment and closing costs, paired with a FirstHome, HomeAccess or (for Start) North Dakota Roots loan. You put in at least $500.
What are the FirstHome income limits in North Dakota?
Under limits effective June 15, 2026, FirstHome and HomeAccess allow household income up to $105,730 for one or two people, more for larger households, and a price up to $500,000 for a single-family home.
Is it cheaper to rent or buy in North Dakota?
Month to month, renting usually is: the median rent is $980, against about $2,073 to own the median home with 10% down. Buying can still win if you stay long enough to build equity.
What is the property tax rate in North Dakota?
Census data put the median bill at $2,550 a year, about 0.96% of median home value, before the Primary Residence Credit.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median household income (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median gross rent (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- North Dakota Office of State Tax Commissioner — North Dakota Primary Residence Credit, up to (per year) (Jan 1, 2026)
- North Dakota Housing Finance Agency: Homeownership — NDHFA DCA and Start assistance (share of the first mortgage); NDHFA programs: buyer cash investment required (Oct 29, 2026)
- CFPB — Minimum FHA down payment; Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- HUD Mortgagee Letter 2023-05 — FHA upfront mortgage insurance premium (Feb 22, 2023)
- North Dakota Housing Finance Agency: Income and purchase price limits — NDHFA FirstHome and HomeAccess purchase price limit, single-family home; NDHFA FirstHome and HomeAccess income limit, households of one or two (Jun 15, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- 42 U.S.C. 12704(14) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.