Income needed to buy a house
Enter a price or pick a state to see modeled monthly housing costs and an income benchmark under the 28/36 planning rule, including property tax, insurance and mortgage insurance.
Income needed: $95,892 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 7.24% (Freddie Mac, week of 2026-10-29).
Estimated household income: about $95,892 a year for a $313,200 home in Texas with $62,640 down.
Uses a 28/36 planning rule: modeled housing costs at 28% of gross income, housing plus other debt payments at 36%. Mortgage approval depends on the lender, loan program, credit and other circumstances. Excludes maintenance, repairs and utilities.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,708 |
| Property tax | $342 |
| Homeowners insurance | $188 |
| Total | $2,237 |
Income needed to buy a median home, by state
| State | Median home | Monthly cost | Income needed | vs. median income |
|---|---|---|---|---|
| West Virginia | $170,800 | $1,089 | $46,687 | -23% |
| Mississippi | $186,500 | $1,266 | $54,241 | -8% |
| Arkansas | $215,600 | $1,399 | $59,951 | -3% |
| Alabama | $233,300 | $1,479 | $63,380 | -5% |
| Kentucky | $226,000 | $1,483 | $63,564 | -1% |
| Louisiana | $223,200 | $1,508 | $64,649 | +6% |
| Oklahoma | $222,100 | $1,536 | $65,813 | -1% |
| Indiana | $243,500 | $1,586 | $67,974 | -6% |
| Iowa | $227,300 | $1,602 | $68,674 | -9% |
| Ohio | $239,800 | $1,652 | $70,799 | -2% |
| Missouri | $254,400 | $1,695 | $72,646 | +1% |
| Kansas | $238,700 | $1,717 | $73,599 | -3% |
| Michigan | $254,200 | $1,732 | $74,224 | +3% |
| New Mexico | $279,900 | $1,779 | $76,243 | +12% |
| North Dakota | $266,100 | $1,792 | $76,783 | -1% |
| South Carolina | $299,500 | $1,860 | $79,734 | +10% |
| Pennsylvania | $277,600 | $1,875 | $80,370 | +4% |
| Nebraska | $263,100 | $1,925 | $82,486 | +8% |
| South Dakota | $289,600 | $1,970 | $84,417 | +10% |
| Wisconsin | $294,700 | $2,007 | $86,030 | +11% |
| Tennessee | $332,600 | $2,054 | $88,036 | +22% |
| Illinois | $280,700 | $2,096 | $89,823 | +8% |
| North Carolina | $333,000 | $2,099 | $89,940 | +22% |
| Wyoming | $339,500 | $2,153 | $92,251 | +22% |
| Maine | $341,900 | $2,213 | $94,830 | +24% |
| Georgia | $343,300 | $2,218 | $95,079 | +19% |
| Texas | $313,200 | $2,237 | $95,892 | +20% |
| Delaware | $371,600 | $2,258 | $96,755 | +11% |
| Minnesota | $344,600 | $2,324 | $99,582 | +14% |
| Vermont | $352,800 | $2,433 | $104,280 | +26% |
| Alaska | $376,500 | $2,494 | $106,865 | +12% |
| Virginia | $403,500 | $2,547 | $109,145 | +19% |
| Arizona | $426,000 | $2,574 | $110,313 | +35% |
| Florida | $396,900 | $2,621 | $112,328 | +45% |
| Idaho | $446,400 | $2,689 | $115,244 | +42% |
| Montana | $425,400 | $2,699 | $115,669 | +54% |
| Nevada | $455,500 | $2,747 | $117,731 | +45% |
| Maryland | $436,300 | $2,838 | $121,641 | +18% |
| Connecticut | $396,900 | $2,851 | $122,181 | +27% |
| Rhode Island | $455,700 | $3,040 | $130,277 | +56% |
| New York | $449,800 | $3,108 | $133,184 | +55% |
| Oregon | $497,500 | $3,131 | $134,176 | +57% |
| New Hampshire | $458,800 | $3,160 | $135,430 | +36% |
| Utah | $545,200 | $3,286 | $140,843 | +46% |
| Colorado | $574,600 | $3,556 | $152,405 | +57% |
| New Jersey | $496,000 | $3,598 | $154,201 | +48% |
| Washington | $602,200 | $3,786 | $162,244 | +63% |
| Massachusetts | $607,400 | $3,956 | $169,548 | +62% |
| Washington, DC | $733,400 | $4,479 | $191,942 | +75% |
| California | $759,500 | $4,711 | $201,898 | +102% |
| Hawaii | $875,900 | $5,099 | $218,513 | +117% |
20% down, 30-year fixed at 7.24% (Freddie Mac PMMS, week of 2026-10-29), state median home value and property tax (Census ACS 2024), median homeowners insurance for homes with a mortgage (Census ACS 2024). Income benchmarks use modeled housing costs at 28% of gross income, with no HOA or other debt payments. They exclude maintenance, repairs and utilities. "vs. median income" compares with the state's median household income.
Frequently asked questions
How much income do I need to buy a house?
It depends on the price, down payment, mortgage rate, property tax, insurance and debts. Using our 28/36 planning rule, the U.S. median home value of $360,600 with 20% down at 7.24% needs about $100,903 a year. This illustration uses U.S. median property tax of $3,211 a year and homeowners insurance of $1,450 a year, with no HOA or other debt payments. It is a planning benchmark; mortgage approval depends on the lender and loan program.
What is the 28/36 rule?
This planning rule keeps modeled housing costs (principal, interest, property tax, insurance, mortgage insurance and HOA) at 28% of gross monthly income, and all monthly debt payments including housing at 36%. It is a budgeting benchmark; loan programs and lenders can use different limits.
Which state needs the least income to buy a home?
West Virginia, where a median-priced home needs about $46,687 a year with 20% down.
New to the area? Read should you rent or buy after moving.