10 Best Affordable Housing Stocks to Buy

7. M/I Homes, Inc. (NYSE:MHO)

Forward P/E: 8.32

Number of Hedge Fund Holders: 38

M/I Homes, Inc. (NYSE:MHO) is among the best affordable housing stocks to buy. On January 7, Citizens analyst James McCanless initiated coverage of M/I Homes (MHO) with an Outperform rating and a $165 price target, citing a favorable medium-term setup despite near-term margin and earnings pressure. While the firm remains cautious on gross margins over the next few quarters, it sees several catalysts supporting the investment case. Notably, M/I Homes has meaningful exposure to the Midwest and Plains states, which remain more affordable relative to the Southeast, helping sustain demand in a higher-rate environment. In addition, the company’s entry-level Smart Series continues to gain traction, delivering above-average gross margins while addressing affordability constraints for first-time buyers.

Operational performance further supports the outlook. During the Q4 2025 earnings call in January 2026, M/I Homes reported record results in its financial services segment, with capture rates reaching 93% for the full year and mortgage capture at 94% in the fourth quarter. The segment generated pretax income of $56 million for the year, including $8.5 million in Q4, underscoring the value of its vertically integrated model. M/I Homes, Inc. (NYSE:MHO) ended 2025 with 232 active communities, up roughly 5% year over year, and opened 81 new communities during the year, with management expecting the average community count to rise by another 5% in 2026.

Founded in 1976 and headquartered in Columbus, Ohio, M/I Homes, Inc. (NYSE:MHO) is a national homebuilder focused on designing, constructing, and selling single-family homes and townhomes. Its combination of geographic diversification, a strong entry-level offering, and growing contribution from financial services positions the company to navigate near-term housing headwinds while maintaining a solid long-term growth profile.