This Michigan city will give you $25,000 toward a new home

The 100 Homes Program Is Real

Jackson, Michigan wants new neighbors so badly it’s writing $25,000 checks to make it happen.

The city’s 100 Homes Program provides forgivable grants to homebuyers willing to build a new home on one of the city’s vacant lots in this Rust Belt town about 75 miles west of Detroit.

With program homes priced at $178,000, that grant covers roughly 14% of the purchase.

The catch? You have to stay for five years, and all homes must be built and occupied by December 31, 2026. For buyers priced out of bigger cities, that’s not much of a catch at all.

Stay Five Years and Owe Nothing

The $25,000 grant works as forgivable down payment assistance.

Participate in the program, live in your new home as your primary residence for five years, and the money is yours free and clear. Leave before the five years are up, and you’ll owe back a prorated portion.

The structure is designed to attract people who actually want to build a life in Jackson, not investors looking to flip houses.

Income Limits Reach Over $100,000

You don’t have to be broke to qualify.

The program accepts households earning up to 120% of the area median income, which works out to approximately $101,150 for a family of four. Single buyers and smaller households have lower caps, but the thresholds are more generous than most assistance programs.

Middle-class families priced out of places like Ann Arbor or Grand Rapids can realistically qualify here.

New Construction, Not Just Any Home

This isn’t a program to help you buy any house in Jackson.

Buyers select from vacant city-owned lots, choose from three floor plans, and wait while builders construct their new home.

All homes are priced at $178,000.

Buyers can also apply for an additional $10,000 in down payment assistance through MSHDA.

Housing Remains Affordable

Jackson’s housing market is still affordable relative to the national median.

The median home price in Jackson is approximately $139,900 – $181,990, compared to the national median of around $357,000 to $428,000.

That means buyers can find move-in-ready homes for around half the national average.

Program homes at $178,000 with $25,000-$35,000 in combined assistance leave buyers with lower monthly mortgage payments than they’d pay in rent in many metro areas.

Federal COVID Relief Funds Pay for It

The money comes from Jackson’s allocation of American Rescue Plan funds, the federal COVID relief package passed in 2021. The city allocated $2.5 million to the program.

Cities got wide latitude to spend the money on economic recovery, and Jackson decided homeownership assistance would do more long-term good than one-time projects.

The deadline is December 31, 2026, when ARPA funding expires.

A Homebuyer Class Is Required

Every applicant has to complete a homebuyer education course before closing.

The class covers mortgage basics, budgeting, credit scores, and home maintenance.

The requirement exists because first-time buyers with down payment assistance have historically higher default rates, and education programs help close that gap.

Industrial Restructuring Hollowed Out the City

Jackson used to be a manufacturing powerhouse.

The city built auto parts—more than 20 car brands were once made here—aircraft components, and industrial equipment through much of the 20th century. But industrial restructuring starting in the mid-20th century gutted the job market. Population dropped from nearly 38,000 in 1990 to around 31,000 today.

Vacant lots accumulated across neighborhoods, leaving behind affordable housing opportunities and city-owned land ready for redevelopment.

Downtown Is Coming Back to Life

The city center looks different than it did a decade ago.

Restaurants and coffee shops have moved into buildings that sat vacant for years. Developers converted old commercial spaces into loft apartments.

The revival is still early, but the storefronts are filling in and foot traffic is returning.

Detroit and Ann Arbor Are Commutable

Jackson sits on I-94 between Detroit and Chicago. Downtown Detroit is about 75 miles east, Ann Arbor is 35 miles. Lansing, the state capital, is 35 miles north.

For remote workers or people willing to commute a few days a week, Jackson offers small-town housing prices within reach of big-city jobs.

The Amtrak station downtown connects to Chicago and Pontiac via the Wolverine service, with three trains daily.

Applying Requires Several Steps

The application process starts with the City of Jackson’s housing office. You’ll need income documentation, pre-approval from a participating lender, and completion of the homebuyer education course.

Staff review applications and match qualified buyers with available lots. Once approved, buyers select a lot and floor plan, and construction begins.

Jackson Is Betting on New Residents

The 100 Homes Program is a bet that new construction and significant grants will bring in people who stay.

Jackson needs residents who pay taxes, send kids to schools, and shop at local businesses.

The city can’t manufacture jobs the way it once did, but it can make homeownership affordable enough to compete with bigger cities.

Explore Jackson, Michigan

Start your visit at the Ella Sharp Museum, located within 562-acre Ella Sharp Park.

The museum operates 11 buildings on a six-acre campus and tells the story of Jackson County from frontier days to the present.

The grounds include a historic farmstead, planetarium, and art galleries. Downtown, grab lunch on Michigan Avenue where the revival is most visible.

If you’re house hunting through the 100 Homes Program, work with the city to select from available lots across established neighborhoods.

This article was created with AI assistance and human editing.

Read more from this brand:

• America is Building Fewer Homes Than Any Year Since 2019 and the Reset Has Begun
• Tampa Is Now the Foreclosure Capital of America
• Cleveland is America’s Saddest City for 2025