Gabrielle Olya

Sat, May 24, 2025, 6:02 AM2 min read

If you’ve already dipped your toe into the world of real estate with the purchase of your home, you may be looking to add to your portfolio with a second home as an investment property. However, the opportunities to make this investment profitable are not the same everywhere, as some states offer more affordable homes than others.

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To determine the best states to invest in a second home, Deluxe Holiday Homes evaluated states based on average house sale price, 30-year mortgage rates, average down payment percentage and disposable income. For the purposes of this study, lower income-to-mortgage ratio percentages indicated better affordability and greater viability for second home investment.

Here’s a look at the best states to buy a second home as an investment.

• Average house sale price: $219,861

• Estimated mortgage payment: $1,633

• Monthly disposable income: $1,996

• % of disposable income spent on mortgage: 81.8%

• Average house sale price: $259,430

• Estimated mortgage payment: $1,819

• Monthly disposable income: $2,144

• % of disposable income spent on mortgage: 84.9%

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• Average house sale price: $236,678

• Estimated mortgage payment: $1,699

• Monthly disposable income: $1,957

• % of disposable income spent on mortgage: 86.8%

• Average house sale price: $209,333

• Estimated mortgage payment: $1,530

• Monthly disposable income: $1,712

• % of disposable income spent on mortgage: 89.4%

• Average house sale price: $158,255

• Estimated mortgage payment: $1,315

• Monthly disposable income: $1,446

• % of disposable income spent on mortgage: 91%

• Average house sale price: $217,707

• Estimated mortgage payment: $1,610

• Monthly disposable income: $1,757

• % of disposable income spent on mortgage: 91.7%

• Average house sale price: $257,276

• Estimated mortgage payment: $1,802

• Monthly disposable income: $1,945

• % of disposable income spent on mortgage: 92.63%

• Average house sale price: $238,797

• Estimated mortgage payment: $1,728

• Monthly disposable income: $1,853

• % of disposable income spent on mortgage: 93.3%

• Average house sale price: $200,266

• Estimated mortgage payment: $1,520

• Monthly disposable income: $1,624

• % of disposable income spent on mortgage: 93.6%

• Average house sale price: $201,708

• Estimated mortgage payment: $1,512

• Monthly disposable income: $1,542

• % of disposable income spent on mortgage: 98%