Affordable homes for sale: how to buy a below-market home

An affordable home for sale costs less than similar homes nearby, but only some buyers can buy it. A program sets the price and the income limit, and usually limits what the next owner can pay. A low asking price alone does not make a home affordable in this sense. This guide covers how these homes are sold, who can buy, what they really cost and the steps to apply.

As of October 7, 2026, we track 359 open homes like this in 30 states. Most are condos and townhomes.

What makes a home affordable instead of just cheap?

A search for low income homes for sale or "cheap homes" sorts by asking price and tells you nothing about who may buy. A program home is different. A housing program sets the price below what the home would fetch on the open market. In return, it limits who can buy it and, usually, what the next owner will pay.

Places use different names: income-restricted homes, below-market-rate (BMR) homes, deed-restricted homes or shared-equity homes. A deed restriction is a legal promise attached to the home that stays with it when it sells.

The buyer limit is usually a share of area median income (AMI), the middle income in your area. Our guide to what AMI means shows the limits in real dollars. HUD, the federal housing department, publishes the figures every year.

One common model is the community land trust (CLT). A nonprofit owns the land and leases it to the homeowner, often for 99 years, and the homeowner agrees to resell at a restricted price.

How are affordable homes for sale sold?

Of the 359 open homes we track, 252 are first come, first served, 75 are lotteries and 32 are waitlists.

• Lottery. Everyone who applies by the deadline goes into a random draw, and the winners are then checked for eligibility. See how housing lotteries work.
• First come, first served. Some are resales. In many, the program approves you first, then you request an available home or contact the seller's agent.
• Waitlist. You join a list and are contacted when a home is ready.

Who runs the sale varies. San Francisco's housing office runs its own lotteries. In Westchester County, New York, a nonprofit called Westchester Residential Opportunities announced the lottery for the Enclave at Armonk homes, which are in the table below. The county's HomeSeeker website runs the draw. Habitat for Humanity and land trusts sell their own homes.

Who can buy an affordable home?

Each program sets its own rules. This table shows what we read on program pages.

In Massachusetts the income limit applies when you apply. Your income can rise later without penalty. Read the listing for the rules that apply to you.

What happens when you sell an affordable home?

You own the home and can sell it, but the program shapes the sale. In Massachusetts, the next buyer must also be income-eligible and pay an affordable price. You may build equity, with limits on how fast or how much, and you need permission to refinance or make large improvements. In San Francisco, the city sets the resale price and picks the next buyer by lottery.

Programs use a resale formula to limit the price. Grounded Solutions Network, a national network of these programs, names three common kinds. A fixed-rate formula lets the price rise by a set percentage each year. An index-based formula lets it rise in step with an index, such as the Consumer Price Index or median household income. An appraisal-based formula adds a share of any rise in the home's appraised value to the price you paid. Ask the program how your resale price would be set before you apply.

What does an affordable home really cost?

The price is only part of it.

Down payment. The Consumer Financial Protection Bureau says that in most cases you need at least 3% down, and many loans and lenders ask for 5% or more. San Francisco says its buyers generally put down 3%.

Closing costs. The bureau says closing costs typically run 2% to 5% of the price. San Francisco puts them at 2% to 3%.

Monthly costs. The bureau lists the mortgage, property taxes, insurance and homeowners association (HOA) dues. If you search for affordable condos for sale, budget for dues. In our data, 57 listings state a monthly fee, from $20 to $1,393, with a middle value of $682.

A rough example for Brightside Lane in Sandwich, Massachusetts, at $265,800: 3% down is $7,974, and closing costs of 2% to 5% would be $5,316 to $13,290. That is an estimate, not a quote. Down payment help exists in some places, and San Francisco, Massachusetts and Boulder each point buyers to it. Colorado's state help is covered in our guide to Colorado first-time home buyer programs.

What affordable homes for sale do we track today?

As of October 7, 2026, these seven states hold 239 of the 359 homes:

New Jersey's low figures are the starting price for the lowest income tier. Prices there rise with the buyer's income tier.

Across all states, 296 listings show a price, from $22,606 to $875,000, with a middle price of $275,000. Of those, 185 start under $300,000. Of 183 listings that post income limits in dollars, 173 show a four-person limit, from $68,520 to $246,600, with a middle of $124,800. Only 20 name a minimum income, from $35,445 to $168,000, and 70 are limited to first-time buyers.

Most of these homes are condos and townhomes. Listings rarely state the building type in a set place, so we judged it from the words in each listing's name and description. Detached houses are the smaller group, and many listings do not say.

Three open homes with deadlines

These are open as of October 7, 2026. Deadlines pass, so check the listing.

The San Francisco listing asks for a homebuyer class and a lender pre-approval. The Armonk listing is free to apply for. Only applicants who are selected pay a $200 processing fee. Homes arrive in phases from January 2027.

How do you read a listing here?

Where the program states them, a listing shows the price and any HOA note, the income limit by household size, how buyers are chosen and the deadline. Rules such as first-time buyer or 55 and older appear the same way. The listing links to the program's own page, where you apply. The qualify check compares your household with the limits, and what you type stays in your browser. Where a listing has no dollar limit, the program's page has it.

How do you buy one, step by step?

1. Check the limit for your household size. Count everyone who will live there.
2. Talk to a HUD-approved housing counselor. HUD says participating agencies can offer pre-purchase counseling and homebuyer workshops, though not every agency offers every service, and they must waive a fee you cannot afford. Search on HUD's or the bureau's counselor finder.
3. Get a mortgage pre-approval. Tell the lender about any resale restriction.
4. Save for the down payment and closing costs. Ask the program about help.
5. Apply by the deadline with income and savings documents.
6. If you are drawn, expect verification. The program checks your documents before any offer.

Our guide to how to qualify for affordable housing lists the documents. If you want to rent instead, read about income-restricted apartments.

Where can you find affordable homes for sale near you?

Start with the open homes for sale, then open the page for your state, such as Colorado, California or Massachusetts. If you hold a Section 8 voucher, ask your local housing office whether it helps voucher holders buy; HUD says some do. We do not list every program, so also check your city's housing office. HUD also sells homes it took over after foreclosure, by bid rather than through an income-limit lottery. Our guide to HUD homes for sale explains how.