Income needed to buy a house in Arizona
A median-priced home in Arizona costs $426,000. With 20% down you'd need about $107,457 a year, $25,971 more than the state's median household income of $81,486. Arizona ranks #33 of 51 for the lowest income needed.
Income needed: $107,457 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 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $107,457 a year to buy a $426,000 home in Arizona with $85,200 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $2,256 |
| Property tax | $152 |
| Homeowners insurance | $99 |
| Total | $2,507 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $21,300 | $3,099 | $132,812 |
| 10% | $42,600 | $2,949 | $126,389 |
| 20% | $85,200 | $2,507 | $107,457 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Arizona: what's different
- Transfer tax
- None
- On the median home
- $0
- Homestead break
- Homeowner rebate + 1% cap
- First-time buyer help
- Arizona Department of Housing
- Transfer and recording taxes. Arizona's constitution bars new taxes and fees on the sale of real property, so there's no transfer tax. The county recorder collects a $2 fee with the affidavit of property value.
- Property tax breaks for your home. There's no homestead exemption, but an owner-occupied home gets the homeowner rebate: the state pays part of its school district primary tax, up to $600 a year. Primary property taxes on an owner-occupied home also can't exceed 1% of its limited value.
- First-time buyer help. The Arizona Department of Housing offers HOME Plus through participating lenders (statewide down payment assistance). Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Arizona metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Phoenix, AZ | $117,776 | $470,600 | $90,133 |
| Tucson, AZ | $91,695 | $349,500 | $72,067 |
| Prescott, AZ | $112,318 | $450,000 | $74,788 |
With 20% down, the median home takes about $91,695 a year in the Tucson area and $117,776 in the Phoenix area, compared with $107,457 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Arizona more expensive than most states
- Home prices: the median value of $426,000 is 18% above the U.S. median of $360,600.
- Property tax: about 0.43% of value a year ($152 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,189 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $233 a month on this loan.
21 states need at least 20% less income to buy their median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Arizona?
About $107,457 a year for the median home of $426,000 with 20% down at 6.95%. With 10% down it's about $126,389.
What is the property tax rate in Arizona?
The median Arizona homeowner pays $1,828 a year, about 0.43% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Arizona?
Median rent is $1,672 a month, while owning the median home costs about $2,507 a month with 20% down, before maintenance. Renting affordably takes about $66,880 a year under the 30% rule.