A median Mississippi home costs $186,500 (50th of 51). Borrowing 80% at 7.40% gives $1,303.11 per month once $101.00 of tax and $169.08 of insurance are added to $1,033.03 of principal and interest; at 5% down with PMI, budget $1,570.63.
Homestead exemptions and property tax relief
The homestead exemption is not automatic. Apply at the county tax assessor between January 1 and April 1. Owners under 65 get a tax credit of up to $300. Owners 65 or older or totally disabled are exempt from tax on the first $7,500 of assessed value.
First-time buyer programs
Mississippi Home Corporation's Smart7 provides up to $7,000 at 0% for down payment and closing costs, repaid when you sell, refinance or pay off the loan. The income limit is $137,870.
Transfer and recording taxes
Mississippi has no transfer tax. Only recording fees apply.
Closing costs to plan for
Attorneys handle most closings. Buyer costs are attorney, title and lender fees, and the first insurance premium, which can be high near the coast.
When property tax bills are due
Mississippi property taxes for one year are billed in the following year by the county tax collector, so a buyer usually gets a prorated credit from the seller at closing for the months of the year the seller owned the home. The homestead exemption is applied as a reduction on that bill and is reimbursed to the county by the state, so it only shows up after you have filed.
Before you buy in Mississippi
Timing matters for the exemption. You must own and live in the home as your primary residence by January 1, and your deed must be filed with the chancery clerk by January 7. You then apply at the county tax assessor between January 1 and April 1, and late filings are generally not accepted. If you close in late December, make sure the deed is recorded before January 7, or you will wait a full year for the credit. On the Gulf Coast, ask for a wind and flood quote before you make an offer, because those premiums can matter as much as the tax bill.
2026 loan limit in Mississippi
FHFA 2026 one-unit conforming limits: the $832,750 baseline covers each of the 82 counties. The typical $149,200 loan stays conforming.
Mississippi numbers used above
| Measure | Mississippi | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $186,500 | $360,600 |
| Effective property tax rate | 0.65% (34th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $2,029 | $1,737 |
| Median household income | $59,127 | $81,604 |
| Median gross rent | $990 | $1,487 |
| Income needed at 28% (20% down) | $55,848 | – |
Frequently asked questions
When do I file for the Mississippi homestead exemption?
Between January 1 and April 1, at the county tax assessor's office. You must own and occupy the home by January 1, and your deed must be filed by January 7.
How much does the Mississippi homestead exemption save?
Owners under 65 get a credit of up to $300. Owners 65 and older, or totally disabled, are exempt on the first $7,500 of assessed value.
Does Mississippi charge a transfer tax?
No. Mississippi has no real estate transfer tax, so only recording fees apply.
What is the median-home payment in Mississippi?
About $1,303.11 a month on a $186,500 home with 20% down at 7.40%, including tax and insurance.
Sources
- 35 Miss. Code R. 6-03-05-104 (homestead dates)
- Mississippi DOR, homestead exemption
- MHC Smart7
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · Mississippi paycheck