Your back of the envelope math is good, but small towns usually have very low property values due to not being super desirable places to live (and declining populations) a realistic average would be 100k average home value. Some will be smaller, older houses and only worth around 25-50k, some will be much newer houses built in this century worth closer to 200-300k but most will be older homes that people continue to live in and maintain worth around 100k