Top 10 Cheapest Places to Live in Nebraska in 2026
October 06, 2026
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This article was originally published on September 24, 2024 and updated in October 2026
Nebraska is no longer a cheap state by default. The statewide median sale price reached $321,661 in August 2026, up 5.5% from a year earlier. But a cluster of county seats and small towns still sells homes for far less. In the ten cities in this guide, median sale prices run from $129,914 to $225,851, roughly 30% to 60% below the state median.
Low prices alone do not make a place affordable, so we ranked these cities by how well local incomes cover the full monthly cost of owning a median-priced home, including property taxes and homeowners insurance. In six of the ten, the typical local household already earns more than the income our model says is needed. In the other four, the shortfall ranges from about $500 to $12,000 a year.
For borrowers, that means a realistic path to ownership in communities with hospitals, colleges and steady job markets. For mortgage brokers partnering with AD Mortgage, it means smaller loan amounts where taxes and insurance make up a larger share of the payment, thin comparable sales in some towns, and local economic risks that deserve a closer look in the file. Each city profile below ends with a note for both audiences.
Methodology
We evaluated homebuying affordability by comparing median home sale prices with local median household incomes across the ten Nebraska communities in this guide.
Home prices come from Redfin’s August 2026 market updates for all home types, with price summaries covering the three months ending August. Local incomes use the U.S. Census Bureau’s 2020–2024 American Community Survey five-year estimates, as reported by Data USA. These income figures are historical estimates, rather than measurements of 2026 earnings.
To qualify, a city needed Redfin data current through August 2026 and at least 10 home sales in August. We identified the lowest-priced qualifying cities and then ranked them by income gap.
For each community, we estimated the monthly cost of buying a median-priced home using a 20% down payment, a 30-year fixed mortgage and the interest rate, property-tax and insurance assumptions detailed in the table. We then calculated the gross annual income needed to keep that payment at 28% of household income.
Places are ranked by their income gap: Income gap = Estimated required annual income − Local median household income. A smaller gap indicates a smaller estimated income shortfall. A negative gap means local median household income exceeds the modeled income target. The separate price ranking shows which of the ten communities have the lowest purchase prices.
This comparison includes cities only.
Home Prices vs. Local Incomes in Nebraska’s 10 Most Affordable Cities
Home Prices vs. Local Incomes in Nebraska’s 10 Most Affordable Cities
Data period. The supplied research uses Redfin’s three-month price summaries ending August 2026. Household incomes are ACS 2020–2024 five-year estimates reported by Data USA.
Financing assumptions. 20% down, a 30-year fixed mortgage, and 7.28% interest, as used in the research model. No private mortgage insurance is included.
² Required annual income. Estimated gross household income needed to keep the monthly payment at 28% of income: monthly payment × 12 ÷ 0.28. Calculations use unrounded payments.
³ Local median household income. Historical Census estimates, rather than measurements of 2026 earnings.
⁴ Income gap. Required annual income minus local median household income. A negative figure means local median income exceeds the modeled target; a positive figure indicates a shortfall. Cities are ordered from the smallest gap to the largest.
Top 10 Cheapest Cities in Nebraska
1. Gothenburg (Dawson County)
Median sale price: $185,877
Price rank: 6 of 10
The town calls itself the Pony Express Capital of Nebraska and has its own hospital. Gothenburg Health offers inpatient acute care, skilled nursing, hospice and a 24/7 emergency room, and residents can take classes through Central Community College and Mid-Plains Community College.
Gothenburg leads the list because of its incomes, not its prices. Its $185,877 median is only the sixth-lowest of the ten, but the median household earns $79,219, the highest in this ranking and about $14,200 more than the $64,996 the model requires. The estimated payment would take about 23% of that income, well under the 28% guideline. Prices also eased 11.5% from a year earlier, according to Redfin.
What to watch: Gothenburg is part of the Lexington labor market (Dawson and Gosper counties), where unemployment reached 15.4% in August 2026, up from 2.7% a year earlier. The jump followed the closure of Tyson’s Lexington beef plant, which laid off more than 3,200 workers.
2. Fairbury (Jefferson County)
Median sale price: $129,914
Price rank: 1 of 10
Fairbury is the cheapest city in the ranking and the only one with a median sale price below $130,000, about 60% under the state median. With 20% down, a buyer would borrow roughly $104,000, and the estimated payment of $1,043 a month needs just $44,683 in household income. Local incomes are modest at $52,995, but still about $8,300 above that target.
Jefferson County’s 2025 average property tax rate of 1.2244% is below the 1.4738% state average, which keeps the modeled tax bill near $133 a month. Jefferson County is also one of six counties where NIFA’s targeted census tracts offer higher income and purchase price limits and waive the first-time buyer requirement. Near town, Rock Creek Station State Historical Park preserves Oregon Trail ruts and a former stop on the Overland Stage and Pony Express routes.
What to watch: the median fell 23.0% from a year earlier on just 11 sales, so a handful of transactions can move it. Expect many older homes in the mix.
3. York (York County)
Median sale price: $176,883
Price rank: 3 of 10
York County’s 2025 average property tax rate of 1.0150% is the second-lowest of the ten counties in this guide, putting the modeled tax bill near $150 a month. The city sits on Interstate 80 and is home to York University, which changed its name from York College in 2022. On the south edge of town, Wessels Living History Farm is a 145-acre working farm museum focused on 1920s agriculture.
York pairs a low price with the most active small-town market in the top five: 26 homes sold in August 2026, second only to Hastings among the ten cities. The $176,883 median is down 11.1% from a year earlier, and at a $63,265 median household income, the estimated payment would take about 26% of gross income.
4. Auburn (Nemaha County)
Median sale price: $159,894
Price rank: 2 of 10
For a town of about 3,500 people, Auburn has strong health care. Nemaha County Hospital has 16 private patient rooms and was the first state-designated Basic Level Trauma Center in Southeast Nebraska, and the local family practice runs a clinic for students and staff at nearby Peru State College. Nemaha County’s 2025 average property tax rate is 1.2334%.
Auburn has the second-lowest median price on the list at $159,894. At a $57,531 median household income, the estimated payment of $1,284 would take about 27% of gross income, leaving a cushion of roughly $2,500 a year.
What to watch: Redfin shows the median up 59.9% from a year earlier on exactly 10 sales, the minimum to qualify for this ranking. That swing likely reflects which homes sold rather than a true 60% rise in values.
5. Nebraska City (Otoe County)
Median sale price: $185,377
Price rank: 5 of 10
This is the birthplace of Arbor Day. Historic Arbor Lodge, the Morton family’s 52-room mansion on a 72-acre park, is where the idea for the first Arbor Day began in 1872, and the Arbor Day Foundation now directs its tours and events. The town’s orchards draw crowds every fall for the AppleJack Festival. For program planning, Otoe County’s 2025 area median income for a four-person household is $106,900, according to the state’s 2025 program limits.
What to watch: Otoe County’s average property tax rate of 1.3665% is among the higher rates on this list, adding about $211 a month to the payment. As a Missouri River town, some properties carry flood risk: about 4% are at risk of severe flooding over the next 30 years, according to First Street data shown on Redfin.
6. Aurora (Hamilton County)
Median sale price: $225,851
Price rank: 10 of 10
Aurora has the highest median price in the top 10 at $225,851, yet it ranks sixth. Two things carry it: a $77,679 median household income, the second-highest on the list, and the lowest property tax rate of any county in this guide.
Hamilton County’s 2025 average rate of 0.9750% is about a third below the 1.4738% state average. On the median Aurora home, that works out to about $184 a month in modeled property tax, roughly $93 less than at the state average rate. Aurora is part of the Grand Island metro area, where unemployment was 2.6% in August 2026. Families can visit the Edgerton Explorit Center, which bills itself as Nebraska’s hands-on science center.
7. Syracuse (Otoe County)
Median sale price: $208,862
Price rank: 7 of 10
This town of about 1,900 people is a commuter option: the city says Lincoln is about 30 miles away, Nebraska City about 20 and Omaha about 50, and more than 120 businesses operate locally. Like Nebraska City, it is in Otoe County, with a 1.3665% average property tax rate.
Syracuse is the closest call on the list. The required income of $72,897 sits within about $500 of the town’s $72,404 median household income, so the estimated payment would take just over 28% of gross income. The $208,862 median fell 21.8% from a year earlier on 12 sales.
8. Holdrege (Phelps County)
Median sale price: about $182,000
Price rank: 4 of 10
Phelps County’s 2025 average property tax rate of 1.0628% is one of the lowest in this guide. Holdrege has been the county seat since 1884 and supports amenities unusual for a town of about 5,500 people, including The Tassel, an 818-seat performing arts center, and the Nebraska Prairie Museum, which averages about 23,000 visitors a year. Phelps Memorial Health Center is one of the city’s major employers.
Holdrege has the fourth-lowest price in the top 10, with Redfin reporting a rounded median of about $182,000. Local incomes are lower, though: at a $55,789 median household income, the estimated payment would take about 31% of gross income, a gap of roughly $5,800 a year.
What to watch: Redfin shows the median up 53.6% from a year earlier on exactly 10 sales, so treat the price as a rough guide.
9. Minden (Kearney County)
Median sale price: $225,576
Price rank: 9 of 10
Kearney County’s 2025 average property tax rate of 1.1071% helps, and the town sits in the Kearney labor market, where unemployment was 2.5% in August 2026. Minden calls itself the Christmas City: lights have hung on the courthouse dome since 1915, and residents have staged the Light of the World pageant since 1946. The town is also home to Harold Warp Pioneer Village.
Minden has the steadiest prices on the list: its $225,576 median slipped just 1.3% from a year earlier on 14 sales. At a $68,449 median household income, the estimated payment of $1,788 would take about 31% of gross income.
10. Hastings (Adams County)
Median sale price: $217,356
Price rank: 8 of 10
Hastings is the largest and most liquid market in the top 10, with 101 homes sold in August 2026, far more than any other city on the list. Its $217,356 median is down 1.9% from a year earlier. At a $64,048 median household income, the estimated payment would take about 33% of gross income, the widest gap in this ranking at about $12,100 a year.
Several factors explain why these ten cities stay within reach, and a few work against buyers.
Home prices well below the state median
Nebraska’s median sale price was $321,661 in August 2026. Every city in this guide sells for at least 29% less, and Fairbury’s $129,914 median is about 60% below the state figure. Entry-level homes also move quickly: statewide, homes listed under $125,000 had only 3.3 months of inventory in November 2025.
Property tax rates below the state average
Nebraska’s statewide average property tax rate was 1.4738% in 2025, down from 1.5326% in 2024 as taxable values rose 9.59%. All ten counties in this guide came in below that average, from 0.9750% in Hamilton County (Aurora) to 1.4015% in Adams County (Hastings).
Property tax relief on every bill
The state funded a $797.3 million School District Property Tax Relief Credit and a $467.1 million Real Property Tax Credit for 2025, both applied directly on property tax bills. Our model uses rates before these credits, so actual tax bills are likely lower. Homeowners 65 and older can also apply for a homestead exemption.
Homeowners insurance is the big exception
Nebraska is one of the most expensive states for home insurance, averaging $5,513 a year for $300,000 of dwelling coverage in 2026. In our model, insurance adds about $200 to $350 a month in these cities, often more than property taxes. Local leaders in the Mid-Plains region rated insurance costs and property taxes 3.8 on a 5-point concern scale.
At 20% down, the median homes here require loans of roughly $104,000 to $181,000, a fraction of the 2026 conforming loan limit of $832,750 that applies in Nebraska.
An older housing stock
Low prices often come with older homes. In the Mid-Plains South Subregion, over 78% of homes were built before 1980 and about a third before 1940, so buyers should budget for repairs and updates.
A large pool of future buyers
About half of Nebraska renters were housing cost-burdened in 2024. For many of them, the payments modeled here are comparable to or lower than what they pay in rent elsewhere in the state.
Quality of life in Nebraska’s most affordable cities
Nebraska’s most affordable cities are not just cheap; most of them pair low prices with incomes that can carry a mortgage. In Gothenburg, Fairbury, York, Auburn, Nebraska City and Aurora, the typical local household already earns more than the income needed to buy the median home with 20% down. In Syracuse, Holdrege, Minden and Hastings, a second income, a commute to a larger job market or down payment assistance can close the gap.
Read More on Most Affordable Places: Find Your Dream State!
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Written by
Carl Holman
Communications Manager
As AD Mortgage’s Communications Manager, Carl Holman has more than 20 years of expertise in marketing, media relations, and communications, having spent 10 years of his career in mortgage lending and real estate. He holds a Bachelor’s in Journalism and Mass Communications from the University of South Carolina.
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