What to know when buying a house in a flood zone

This article is for informational purposes only and is not intended to provide, and should not be relied on for, medical, legal, financial, or tax advice. You should consult with a qualified professional for advice specific to your situation. Consumers should independently verify that any services, products, or programs referenced meet their needs and comply with applicable requirements.

Whether it’s for the beach days, good fishing, boating, or just the sights, sounds, and smells of marine life, many are attracted to the water. Still more just live near a river. Whether you’re taken with waterfront views, lower prices, or just a charming neighborhood, it’s important to understand the flood risk.

Homes in high-risk flood zones may have exactly what you’re looking for in every other respect, while also presenting a risk to prepare for. By the end of this article, you’ll know what questions to ask, have some idea of the costs to expect, and have the tools to make a decision on the home with confidence.

Key Takeaways:

• FEMA evaluates flood risk and designates zones based on the level of risk.
• Homes in high-risk flood zones might be less expensive, but they can require costly flood insurance.
• Not all states require sellers to disclose a house’s flood zone or flood history, so it’s essential for buyers to conduct their own research.

What is a flood zone?

A flood zone is an area classified by the Federal Emergency Management Agency (FEMA) to be at risk for flooding. FEMA uses ranked codes on flood insurance rate maps (FIRMs) to measure flood risk in a specific zone.

• High-risk zones: These zones have a 1% or higher chance of experiencing flooding in any given year, with a 26% chance of a flood occurring during a 30-year mortgage period. These high-risk zones begin with the letters A or V on the maps and are considered Special Flood Hazard Areas (SFHAs).
• Moderate-risk zones: These zones are less likely to experience flooding, though it’s still possible. These are designated with the letters B or a shaded X. There’s a 0.2% chance of a flood each year in these zones.
• Minimal-risk zones: These zones have minimal, though possible, risk of flooding. These zones are labeled with the letters C or an unshaded X.

The federal government uses shading rather than another letter for the difference between moderate-risk and low-risk flood zones, so that’s something to pay attention to as you evaluate the risk associated with your purchase.

Is my house in a flood zone? Assessing your risk

If you’re trying to wrap your mind around the flood risk associated with any particular home, there are a few steps to take:

• Find your zone on the flood map. The Flood Map Service Center helps you determine the zone in which your potential home is located. After entering coordinates, an address, or town, an overhead view of the area comes up with flood risk overlays within about a minute. But the thing that is probably easiest to pick out on the map is the flood zone designation
• Understand your risk. All flood zones carry the risk of significant flooding, regardless of how low that risk may be. According to the National Flood Insurance Program, the federal program that underwrites flood insurance policies for those in participating communities, 29% of all claims for the period 2014 – 2024 come from people outside of high-risk zones. Floods can occur even outside these zones. Some have pointed out changing weather patterns. FEMA’s maps are updated periodically and may not fully reflect current probabilities. When these updates take place, homes may move into or out of flood zones or see the underlying risk level change.
• Budget for flood insurance. Because traditional homeowners insurance does not cover flood damage under most circumstances, you will likely have to purchase separate flood insurance. This means that your monthly payments will be higher than those of a similarly priced home elsewhere. Rocket Mortgage requires the purchase of flood insurance in Zones A and V. If you’re getting a co-op with us in the state of New York, you’ll be required to have flood insurance if you’re within a coastal barriers resource system or otherwise protected area. Some lenders may also require that you purchase a Natural Hazard Disclosure Report for homes located in a flood zone.

Buying a house in a flood zone: What are the risks?

If you’ve got your heart set on a house that happens to be in a flood zone, it doesn’t have to be a dealbreaker. You just need to know what to prepare for.

Potential for significant flood damage

As with anything, insurance cannot cover all damage. Losing all or even some of one’s personal belongings due to a flood can be emotionally and financially devastating. Evacuation might be necessary, and your home might be destroyed beyond repair. Having to start over somewhere else can have a significant impact on one’s mental and financial health.

Even minor flooding can cause a lot of damage and hassle. An inch of water might mean replacing flooring, drywall, and furniture, which can quickly add up. From 2020 – 2024, the average claim through the National Flood Insurance Program was $82,614.

High cost of homeowners flood insurance

The cost of homeowners flood insurance is generally tied to the risk of flooding in your zone. Flood insurance is a separate policy designed to protect you in the case of a flood. It covers more than the hazard coverage some home insurance includes. While it will protect you in a disaster, it can be costly.

The most recently available data from the NFIP was for policies in effect August 31, 2023. The median home price as of March 2026 was $436,523, according to Redfin.¹ Based on 2023 rates, the annual cost for that insurance would be $2,407 for a coverage band that would cover replacement value. There are some government subsidies, but insurance costs can exceed $2,000, in addition to homeowners insurance.

You can get flood insurance through the National Flood Insurance Program or a private insurance carrier. NFIP offers up to $250,000 in coverage for the home’s structure and up to $100,000 in coverage for personal belongings. Private carriers might offer larger policies or additional coverage.

Homes in flood zones may narrow the buyer pool

If you’re worried about living in a flood zone, others probably are, too. It can be challenging to find a buyer willing to move into a high-risk flood zone. There are natural worries about safety and future value. Requirements vary by state, but you may have to include floodplain and history information in your Seller’s Disclosures.

Buying a house in a flood zone: What are the advantages?

Living in a flood zone presents clear challenges, but there are also a couple of advantages.

Lower purchase prices

Flood risk may impact a home’s value, although this may not make a significant difference in vacation hotspots. However, buyers willing to take the risk and prepare for any issues might be able to secure a home that would otherwise be out of their budget, even after factoring in flood insurance.

The prevailing market in your location will be the controlling factor, so discounts based on flood risk are far from a hard-and-fast rule.

Waterfront and scenic properties

While being in a flood zone doesn’t necessarily mean living on the water, you’re more likely to live on or near it. Depending on your lifestyle, this can be worth the risk.

If being able to go swimming or fishing, just a quick walk or drive from your front door, is a home buying must-have, you’re probably willing to make the trade-off. The same applies to those who enjoy watching the sunset over the water. Home safety precautions can be taken against flooding, and some risks can be reduced.

How can I obtain a mortgage for a house located in a flood zone?

Getting a mortgage for a home in a high-risk flood area isn’t so different than getting one for a home elsewhere. But there are some flood zone mortgage requirements.

Under the Flood Disaster Protection Act of 1973, if you live in an SFHA, flood insurance is a condition of the loan when it’s being backed by the government (FHA, USDA, VA) or a government-sponsored entity (Fannie Mae, Freddie Mac).²^,³ If you don’t have it, lenders are required to purchase it for you, and it may be at a higher cost.

You must factor in the cost of flood insurance premiums when considering your monthly and annual costs. Getting preapproved for a mortgage will help you determine how much house you can afford and if flood insurance is in your budget.

Rocket Mortgage doesn’t offer USDA loans currently.

FAQ

If you’re interested in a property that’s in a floodplain, speak with your real estate agent to learn more about the property’s history.

Can I get insurance for the property?

You should be able to get the necessary flood insurance, whether that’s through the NFIP or a different policy through a private carrier. Every carrier evaluates risk differently, so get a quote before making an offer. Factors affecting coverage could be whether it’s new construction, the elevation, and flood zone designation.

What is the home’s flood zone designation?

You can check FEMA’s flood map database. Zones starting with A and V are considered high risk, while zones starting with B or a shaded X are a moderate risk. This can affect both whether you’re required to have flood insurance and the associated premiums.

How often does this property flood?

States have different policies regarding what’s required in a Seller’s Disclosure. Flooding isn’t always included. Your next best source may be to check local permits to see what kind of work and mitigation was done. FEMA does have local claims data, but it’s not at the individual level unless you own the property and requires knowing your way around an application programming interface (API).

What flood mitigation has been done on the property and in the community?

Common floodplain management techniques that you can ask about on the property itself include changes in elevation, flood vents, sump pumps, and landscaping changes. At the community level, levees and retention ponds may be in place. They may also participate in FEMA’s Community Rating System.

Can my flood zone code get changed?

If you can prove that your property is high enough not to be affected by the floodplain, you can ask to have your flood zone changed. This requires a Letter of Map Amendment. To successfully go through this process, you’ll likely have to hire a licensed surveyor or engineer to create an Elevation Certificate.

The bottom line: Carefully weigh buying a home in a flood zone

Buying a home in a flood zone is doable, but it requires some due diligence. Start by checking the flood maps and learning as much as you can about the flood history of the home and the area. Get a quote on the insurance before making an offer so you know what you’re getting into.

If you’d like to see what you can afford, regardless of where your dream home is, you can start the approval process today.

¹ Rocket Mortgage is an affiliate of Redfin. You aren't required to use its lending services. Learn more at redfin.com/afba.

² Rocket Mortgage is not acting on behalf of FHA or HUD

³ Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage and Redfin are trademarks or service marks of Rocket Mortgage LLC or its affiliates.