New 2024 USDA Mortgage Zones Placed Near High-Population Cities

20 smaller cities near big cities where home buyers can now get 100% USDA mortgages

Effective October 1, 2023, the U.S. Department of Agriculture added 1,131 areas to its USDA mortgage footprint for 2024 and removed thirty-six areas from eligibility.

First-time home buyers can purchase USDA-eligible homes with 100% financing through the USDA Single-Family Guaranteed Loan Program. Also known as Section 502 mortgages, USDA loans allow buyers to purchase homes with no money down, lower mortgage insurance rates, and interest rates averaging 0.25% below conventional mortgage rates.

USDA mortgages are designed for modest homes in non-urban areas.

This Homebuyer.com study highlights 20 newly-eligible USDA cities within commuting distance of major population centers ranging between 800,000 to 10 million residents. The study uses data from the U.S. Department of Agriculture, the U.S. Census Bureau, and Google Maps.

For the complete, state-by-state list of changes in the 2024 USDA eligibility map, visit:

• Cities added to the 2024 USDA mortgage eligibility list
• Cities removed from the 2024 USDA mortgage eligibility list

Scroll to the bottom for our complete methodology, outlining the research process.

Check your eligibility and begin your application now.

20 New USDA Mortgage-Eligible Cities Near Large Population Centers

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Methodology

To find newly-eligible USDA addresses, this study used data from the Census Bureau. Specifically, Urban Area shapefiles based on the Urban and Rural portions of the 2020 U.S. Census and the 2010 U.S. Census. These files distinguish urban census tracts from non-urban ones, which is the key factor for USDA eligibility. Custom software identified the differences between the files and compared them to Census Bureau data to confirm the polygons and multipolygons for the areas.

Next, census tracts were mapped using latitude and longitude coordinates to identify nearby zip codes and counties. Google Maps was used to estimate the commuting distance by car to the nearest large city center. Public or mass transit was not considered as a commuting option.

For population and median income data, the study referenced the U.S. Census Bureau’s 2020 American Community Survey and the FFIEC Home Mortgage Disclosure Act (HMDA).

The accuracy of the study was ensured by using robust HMDA and Census Bureau data and the precision of the database queries. A stringent data extraction, filtering, and analysis process was followed to improve the reliability of the results.

How To Share Our Research

Homebuyer.com conducted this research to help first-time home buyers make better housing choices.
If you found the research helpful, please share this article with proper attribution.

Here’s how to properly share the Homebuyer.com study:

• Include highlights from the study only. Do not copy images or tables.
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• You must link to this page using one of these terms: “New 2024 USDA Mortgage Zones Placed Near High-Population Cities”, “New USDA Areas In Commuting Distance To Population Centers (2024)”, or “Homebuyer.com”.

For follow-up information and usage rights for our research, please email our team at hello@homebuyer.com.

Sources:

• ZIP code data – U.S. Census Bureau
• The Home Mortgage Disclosure Act – FFEIC
• U.S. Department of Agriculture – USDA