Cost of Living Inside a Tiny Home – Downsize To Save More!

The tiny house is redefining the American dream as you can now own a home with little or no debt and travel the country while working on the road. You can build your own tiny house and design a space that aligns with your interests, tastes, and lifestyle. The tiny home comes at a much lower cost than a traditional home, and since everything is smaller, you get to pick from top-of-the-line finishing at more competitive pricing. You will find countless articles extolling how affordable it’s to build your own tiny home, but no one talks how much savings you make while living in a tiny house. Regular repairs, weekly maintenance, and other utility bills inside a tiny house are far less than the expense of an average traditional home.

The cost of living varies depending on the situation. Generally, an ordinary tiny homeowner can expect the monthly bills to range from $500 to $1000 (as per Business Insider). This article discusses the monthly cost expectations inside a tiny home and all the factors that can affect the monthly bills when you live in a tiny home.


Zoning laws add $$$

Every municipality has various building, zoning, land use, and inspection laws and regulation – not to mention these have associated fees. You need to play by the rules laid down by the jurisdiction. Rural areas have lenient laws that can help you save money. However, violating the local housing laws and zonal codes will get you fined. Additionally, you might have to pay monthly storage-space rentals for excess belongings. 


Average Cost –Relies on a lot of factors 

Two factors determine whether the tiny homes are taxable and the amount of money you must pay. First, the state where your tiny home is parked, and second, the kind of tiny home you purchase. If you build your own tiny home on a fixed land (foundation), you need to pay a larger real estate tax, based on the land valuation. 

On the other hand, a tiny home on wheels listed as a mobile home will have The Personal Property Tax and this is applicable only if the state charges this tax. This tax is also called the ad valorem tax (as per the Balance Money). There are 2 types of property taxes: the State Tax and the Local Property Tax. The State Tax depends on the type, weight, value, and other factors of a mobile home. The Local Property Tax depends on the valuation of a mobile home. While some states will ask you to pay both taxes, others will ask for neither. Even the accurate rates of the tax vary depending on the state’s rules and regulations. 


Average cost – $50 to $150 per month (annually as per TinyHouseBloom)

If you easily want to acquire tiny home insurance, build your tiny house with a certified builder. TinyHouseMe connects you with multiple established builders across the USA. These builders offer customized tiny homes within a budget. Of course, there are challenges associated with acquiring homeowner’s insurance but connecting with the builders via TinyHouseMe simplifies the process. 

Insurers are more likely to cover tiny homes on foundations certified by the National Organization for Alternate Housing and mobile houses that have RV certification after the built. Insurers are reluctant to insure a tiny home that hasn’t been insured for a long time. However, the insurance cost again depends on the location, the insurance plan, the travel lifestyle, and the tiny home itself.  


Average Cost – Depends on the type of tiny home (stationary or mobile)

If you already own land and park or install the foundation of your tiny home there, you don’t have to pay anything for the space. Similarly, if your state allows you to install the tiny house foundation on your plot of land, then there’s no pay for the rental space. However, many tiny homeowners do not own a plot of land and must pay for a rental space. That’s when you can consider a tiny home on wheels.

When you rent a space (campground fee) for parking your tiny home on wheels – you will require a fee. The good news is that the parking fees are consistent across the country. However, if you have a tiny home on wheels, you get to stay in an RV park or campground, which can be pricier but allows access to a range of amenities that are included with the monthly rent. As per Camping Advisor, RV parks charge anywhere from $400 to $600. Additionally, according to RVing Know How, you might also need to pay a Property Owner’s Association Fee that ranges from $40 to $80 but includes some benefits. 

A third option is to park in farmland or the backyard of private property-owners (if zoning rules allow). The private property-owners offer their land at a much cheaper price.

Utilities (if not included in rent)

Average cost – $50 to $300 per month (as per TinyHouseBloom)

Just because you are living in a smaller space, utilities don’t disappear. As per Riding Tiny, if electricity and water come under the house rent, you pay only $50. However, if that’s not the case, as per TinyHouseBloom, the electricity costs can vary from $30 to $200 depending on weather conditions, insulation, and other power sources. Even with solar panel installation, by law, you require alternative power sources in your home, which shoots up the electricity bills. Water is not a cause of concern as it’s free with the parking rent, and you can even haul water from a nearby well. TinyHouseBloom says, you should expect to spend around $10 to $15 on propane tanks, but it depends on the devices powered by propane. Additionally, the internet connection might need you to spend $20 to $100 on unlimited hotspot plans, and the cost depends on your mobile connection and the plan you select. 


Average cost – $25 or more per month (as per Riding Tiny)

The maintenance costs depend largely on the quality of materials you occupy your tiny homes with. Good quality materials have a longer lifespan and need fewer repairs. Generally, repairs are about replacing the water pumps and staining the exterior that needs to be fixed. Tiny homes barely need repairing, except for winterizing the home, which is done annually, and the cost shoots up to $35, as per TinyHouseBloom

Moving Costs 

Average cost – $20 to unlimited  (as per TinyHouseBloom)

The towing costs of a tiny home depend on the size and the distance. The travel costs should consist of gas and vehicle maintenance. However, you require more gas in winter for backup generators as there is a huge possibility that the solar panels might fail to work due to inadequate lighting. 


Wrapping up the tiny home living costs 

The living cost inside a tiny home is based on your lifestyle and goals. If you are downsizing to save money, the tiny home lifestyle can cost as low as $630, as claimed by TinyHouseBloom. There are many ways to reduce the cost of living in a tiny home. If you are looking forward to build your own tiny home, then get in touch with established builders via TinyHouseMe. We connect you faster with the builders, and our experts give you valuable tips to live comfortably and affordably inside a tiny home. Start preparing for your tiny home lifestyle from today!