Yes, counterintuitively: FinanceRateCalc's analysis of 2025 federal HMDA records shows the sub-$150K FHA denial penalty is largest in expensive markets - Idaho 3.2x (38.3% vs 12.0%), New Hampshire 2.7x with 53.8% of small applications denied, Utah 2.7x, Massachusetts 2.6x - while in affordable states like Iowa and Michigan the penalty is a mild 1.5-1.6x, consistent with low-priced properties being the most marginal collateral in high-cost markets.
Source: CFPB HMDA 2025 (1,217,297 decisioned FHA applications), processed by FinanceRateCalc · methodology · all statistics