What does it actually take to buy a home in America today? We calculated the minimum household income needed to afford a median-priced home in every major metro area, using standard lending criteria: 30-year fixed mortgage at 6.5%, 10% down payment, and a maximum 28% front-end debt-to-income ratio.
Assumptions
Our calculations assume:
- Mortgage rate: 6.5% (30-year fixed, approximate average as of Q1 2026)
- Down payment: 10% of purchase price
- Property tax: State-specific effective rates (range: 0.31% in Hawaii to 2.23% in New Jersey)
- Homeowner's insurance: $1,800/year national average, adjusted by state
- PMI: 0.5% of loan amount annually (for <20% down)
- DTI threshold: 28% front-end ratio (PITI ≤ 28% of gross income)
Most Expensive: Top 25 Metros
| Metro | Median Price | Income Needed | Median Income | Gap |
|---|---|---|---|---|
| San Jose-Sunnyvale | $1,480,000 | $372,000 | $155,000 | -$217K |
| San Francisco-Oakland | $1,150,000 | $296,000 | $138,000 | -$158K |
| Honolulu | $895,000 | $231,000 | $95,000 | -$136K |
| San Diego | $825,000 | $214,000 | $96,000 | -$118K |
| Los Angeles-Long Beach | $865,000 | $224,000 | $82,000 | -$142K |
| Seattle-Tacoma | $690,000 | $178,000 | $110,000 | -$68K |
| Boston-Cambridge | $725,000 | $192,000 | $108,000 | -$84K |
| New York-Newark | $620,000 | $172,000 | $88,000 | -$84K |
| Washington DC | $585,000 | $152,000 | $118,000 | -$34K |
| Denver-Aurora | $575,000 | $149,000 | $95,000 | -$54K |
| Portland-Vancouver | $525,000 | $136,000 | $88,000 | -$48K |
| Miami-Fort Lauderdale | $520,000 | $138,000 | $68,000 | -$70K |
| Sacramento | $510,000 | $132,000 | $85,000 | -$47K |
| Austin-Round Rock | $445,000 | $116,000 | $92,000 | -$24K |
| Nashville | $435,000 | $113,000 | $78,000 | -$35K |
| Raleigh-Durham | $420,000 | $109,000 | $88,000 | -$21K |
| Tampa-St. Petersburg | $375,000 | $99,000 | $68,000 | -$31K |
| Salt Lake City | $495,000 | $128,000 | $88,000 | -$40K |
| Minneapolis-St. Paul | $365,000 | $96,000 | $92,000 | -$4K |
| Phoenix-Mesa | $415,000 | $108,000 | $78,000 | -$30K |
| Charlotte | $385,000 | $101,000 | $75,000 | -$26K |
| Atlanta | $370,000 | $97,000 | $82,000 | -$15K |
| Dallas-Fort Worth | $365,000 | $96,000 | $82,000 | -$14K |
| Chicago-Naperville | $345,000 | $96,000 | $82,000 | -$14K |
| Philadelphia | $330,000 | $92,000 | $78,000 | -$14K |
Most Affordable Metros
| Metro | Median Price | Income Needed | Median Income | Gap |
|---|---|---|---|---|
| Pittsburgh | $205,000 | $57,000 | $68,000 | +$11K |
| Cleveland | $195,000 | $54,000 | $58,000 | +$4K |
| Detroit-Warren | $225,000 | $61,000 | $62,000 | +$1K |
| St. Louis | $230,000 | $63,000 | $68,000 | +$5K |
| Memphis | $215,000 | $59,000 | $56,000 | -$3K |
| Oklahoma City | $210,000 | $56,000 | $62,000 | +$6K |
| Buffalo | $215,000 | $59,000 | $62,000 | +$3K |
| Birmingham | $225,000 | $60,000 | $58,000 | -$2K |
Only a handful of metros—primarily in the Rust Belt and parts of the South—offer housing affordable to their median-income household. Even these markets have seen significant price appreciation: Pittsburgh's median home price rose 28% since 2020.
The Interest Rate Factor
Interest rates dramatically affect required income. At today's 6.5% rate, the income needed for a $389,000 home is $102,000. Here's how that changes:
- At 5.0%: $88,000 needed (-14%)
- At 4.0%: $78,000 needed (-24%)
- At 3.0% (2021 lows): $68,000 needed (-33%)
- At 7.5%: $114,000 needed (+12%)
The rate environment of 2020-2021 (2.7-3.5%) made homeownership feasible for millions more families than today's rates. The loss of that affordability window is one of the defining economic shifts of the decade.
Data Sources
Zillow Home Value Index (Dec 2025), Freddie Mac Primary Mortgage Market Survey, Census ACS 2023 Median Household Income, Tax Foundation State Property Tax Data, FHFA House Price Index