California · 173rd largest metro area

Buying a home in Merced, California

In Merced, the median value of owner-occupied homes is $372,600, Merced County's effective property tax rate is 0.67%, a purchase mortgage carried a median $11,302 in total loan costs in 2025, and median gross rent is $1,393 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Merced home costs, fact by fact

About Merced

Merced is the first-named place in the Merced, CA metro area, which ranks 173rd nationally, and it counts 96,073 residents. Merced County's effective property tax rate (median tax as a share of home value) is 0.67%, and 45.9% of homes are owner-occupied.

Reading the Merced figures

Merced's estimated median of $372,600 is far below the California statewide figure of $770,700, one of the sharpest gaps among the cities in this data. Fresno reports $374,800, Bakersfield reports $371,700 and Visalia reports $371,500, so Merced sits right among them, with Redding higher at $382,300 and Hemet lower at $352,200. Los Angeles, at $921,200, is much higher. These are owners' estimates, not sale prices.

Renters pay a median of $1,393 a month, below Fresno's $1,421 and Bakersfield's $1,472, while HUD's benchmark for the Merced area is $1,517, above the local median. so Merced falls in the middle of that range, with rent of $1,490 in Visalia and $1,379 in Redding a little either side. Owner-occupancy is just 45.9%, below Fresno's 50.1% and Bakersfield's 60.6%, so renters make up a larger group here than in most cities named. Stockton shows 53.9% and San Bernardino shows 50%, also higher owner shares.

Merced counts 96,073 residents, a smaller city than Fresno, which counts 550,105, Bakersfield with 417,468 or Stockton with 324,975, and closer to Redding with 93,502, Hemet with 92,912 and Citrus Heights with 86,909. Estimates across those smaller cities run from Hemet's $352,200 to Redding's $382,300, with Citrus Heights higher at $454,600, so Merced sits inside that range. Rent is more spread, since Citrus Heights reports $1,827 and Hesperia $1,590, both higher than Merced. Tenure is another point of difference: Hesperia shows 67.2% owner-occupied and Hemet 62.3%, well above Merced's 45.9%.

Lancaster, at $446,600 with a rent of $1,764, and Modesto, at $442,700 with a rent of $1,690, report values well above Merced's and rents higher too. Victorville, at $385,600 with a rent of $1,618 and a 60.6% owner share, sits closest on value among them. San Bernardino reports $422,300 and Stockton reports $440,900, also above Merced on value, with rents of $1,508 and $1,577.

Merced County's levy of 0.67%, assessed against $391,800, gives a median annual tax of $2,634. The county's $391,800 estimate is above the city estimate, so the county tax figure may overstate a typical bill here. The loan side is where Merced stands out: of 1,485 mortgages recorded in 2025, lenders charged a middle figure of $11,302, a figure that sits high for a county with this price level. The central spread ran from $6,478 to $14,996, a wide band, so quotes from several lenders can differ a lot. For a buyer, the loan cost is a larger part of the picture here than in many cities with a similar home value.

The Merced metro area ranks 173rd in the country with 296,774 residents, and the city counts 96,073.

Calculate for California

If you buy

California state transfer tax

California has no state transfer tax; counties and cities may charge one.

Price$770,700
State transfer taxnot computed
Who paysSet by the purchase contract

Default price: the California median value of owner-occupied homes, $770,700 (Census ACS 2025). Not computed: No state tax. The tax is set by county and city, so it cannot be computed from the state alone. Who pays: Neither the state statute nor the City of Los Angeles FAQ assigns the tax; the purchase contract and escrow instructions decide. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. California transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: California state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Merced

How much is property tax in Merced?

Homeowners in Merced County pay a median $2,634 a year in property tax, 0.67% of the county median home value of $391,800 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Merced?

Home-purchase mortgages in Merced County carried median total loan costs of $11,302 in 2025; half of the 1,485 loans fell between $6,478 and $14,996 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Merced?

California has no state transfer tax. Counties may charge $0.55 per $500 of value under the Documentary Transfer Tax Act, and cities such as Los Angeles add their own, with Measure ULA adding 4% or 5.5% on very high-priced sales.

Is it cheaper to rent or buy in Merced?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Merced ($372,600) equals 22.3 years of the median gross rent ($1,393 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Merced?

Across California, the main hazards for home insurance are earthquake, wildfire, flood and landslide, and the insurer of last resort is California FAIR Plan. A standard California homeowners policy does not cover earthquake damage; insurers must offer earthquake coverage (Insurance Code 10081), and the FAIR Plan sells limited fire coverage up to $3 million for residential policyholders.

Run your own numbers: rent vs buy calculator · closing costs calculator.

California rules that apply in Merced

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Sources

California · All states · Federal guides