20 Most Affordable Markets with Good Schools

RealtyTrac analyzed school test scores for nearly 25,000 elementary  schools in more than 7,500 U.S. ZIP codes, along with home price affordability  in those same zip codes to identify the top zip codes with the ideal  combination of good schools and affordable home prices — and also with low  unemployment rates below the national average. RealtyTrac also looked at zip  codes with good schools and the least affordable home prices.

Markets with Good Schools and Affordable Homes

  • There were 489 zip codes with elementary schools  where 2013 test scores were at least one-third higher than their respective state  average and where the average price of a residential property required  one-third or less of the median household income. These zip codes also had a  maximum unemployment rate of 5.9 percent in September.
  • Cities with the most affordable zip codes with  good schools were led by Orlando, Fla., (9), Raleigh, N.C. (8), Phoenix, Ariz.,  (6), followed by five cities each with five affordable zip codes with good  schools: Chandler, Ariz., Colorado Springs, Colo., Grand Rapids, Mich.,  Lexington, Ky., and Wilmington, N.C.
  • States with the most affordable zip codes with  good schools were New York (105), North Carolina (66), Florida (62), Illinois  (50), and Michigan (40).
  • The average test score for the best elementary  schools in these 359 zip codes was 49 percent higher than their state average.

 

20 Most Affordable Markets with Good Schools

Markets with Good Schools and Unaffordable Homes

  • There were 127 zip codes with elementary schools  where 2013 test scores were at least one-third higher than the state average  and where the average price of a residential property required two-thirds or  more of the median household income. These zip codes also had a maximum  unemployment rate of 5.9 percent in September.
  • Cities with the most unaffordable zip codes with  good schools were New York, N.Y. (22), San Francisco, Calif., (8), Flushing,  N.Y., (4), Newport Beach, Calif., (4) Oakland, Calif., (4),  San Jose, Calif., (4), and Portland, Ore.,  (3).
  • States with the most unaffordable zip codes with  good schools were California (69) and New York (44). No other states had more  than three unaffordable zip codes with good schools.
  • The average test score in these 91 zip codes was  60 percent higher than their state average.

 

20 Least Affordable Markets with Good Schools

Methodology
School data is from each states’ Department of Education. Test  scores are based around the test average of each state with the state average  being a score of 1.  The higher above the  state average the school is, the higher the grade.

Home prices are average home prices for single family homes  and condos sold in the last 12 months (November 2013 through October 2014) in  each zip code based on the sales price on the recorded sales deed.  Non-disclosure states where the full sales price is not required to be included  on the recorded deed were not included in the study: Alaska, Idaho, Indiana,  Kansas, Louisiana, Maine, Mississippi, Missouri, Montana, New Mexico, North  Dakota, Texas, Utah and Wyoming.

Annual median household income data came from the U.S.  Census Bureau.  Annual median household  income for 2013 to 2014 was estimated based upon 2000-2012 numbers on a county  basis and then adjusted for current market conditions.  The increase/decrease in median household  income by zip code is assumed to be the same as the projected increase/decrease  in the respective county where the school is in.

In calculating average house payments, fixed 30 year  mortgage rates were obtained from Freddie Mac for every month. It was assumed  that the average borrower would make a 10% down payment (on a property that  sold for the October 2014 TTM Average Home Price.  The mortgage term would be 30 years, and  insurance combined with property tax would be 1.39% of the value of the home.  PMI would be required at 1% of the total loan  amount.

September 2014 unemployment rate is reported on by the  county level and is released by the Bureau of Labor Statistics.

 

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