Income needed to buy a house in Washington, DC
A median-priced home in Washington, DC costs $733,400. With 20% down you'd need about $191,942 a year, $82,235 more than the state's median household income of $109,707. Washington, DC ranks #49 of 51 for the lowest income needed.
Income needed: $191,942 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 $191,942 a year for a $733,400 home in Washington, DC with $146,680 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 | $3,998 |
| Property tax | $383 |
| Homeowners insurance | $97 |
| Total | $4,479 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $36,670 | $5,519 | $236,515 |
| 10% | $73,340 | $5,253 | $225,149 |
| 20% | $146,680 | $4,479 | $191,942 |
Income benchmarks use the 28/36 planning rule with no HOA or other debt payments. Mortgage approval depends on the lender and loan program. Monthly costs exclude maintenance, repairs and utilities. Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Washington, DC: what's different
- Transfer tax
- 2.2%–2.9% in total
- On the median home
- $21,270
- Homestead break
- $91,950 off assessed value
- First-time buyer help
- DC Housing Finance Agency
- Transfer and recording taxes. The District charges a recordation tax and a transfer tax at the same rate: 1.1% each on homes under $400,000 and 1.45% each from $400,000 up. Eligible first-time DC buyers of houses and condos can apply for a reduced 0.725% recordation tax when the total property purchase price is at most $794,000 (FY2027 Form ROD 11, effective October 1, 2026). Household income, DC residency and homestead requirements apply. Submit the current application when the deed is offered for recordation; the seller's transfer tax is unchanged. On the median Washington, DC home ($733,400), that's about $21,270 in recordation and transfer taxes.
- Property tax breaks for your home. The homestead deduction takes $91,950 off the assessed value of an owner-occupied home for tax year 2026, saving $781.58, and the taxable assessment can rise no more than 10% a year.
- First-time buyer help. The DC Housing Finance Agency offers DC Open Doors through participating lenders. Check its site for income and price limits.
Checked against official sources on October 21, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices across the Washington metro area
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Washington, D.C. | $164,880 | $604,800 | $126,244 |
The median home in the Washington, D.C. area is worth $604,800, 18% less than the District's median, and takes about $164,880 a year to buy with 20% down.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 7.24%, 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 Washington, DC more expensive than most states
- Home prices: the median value of $733,400 is 103% above the U.S. median of $360,600.
- Property tax: about 0.63% of value a year ($383 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,168 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 $405 a month on this loan.
45 states need at least 20% less income to buy their median home. States with a similar income requirement:
- California $201,898
- Massachusetts $169,548
- Hawaii $218,513
- Washington $162,244
- New Jersey $154,201
- Colorado $152,405
Frequently asked questions
How much do you need to make to buy a house in Washington, DC?
About $191,942 a year for the median home of $733,400 with 20% down at 7.24%. With 10% down it's about $225,149.
What is the property tax rate in Washington, DC?
The median Washington, DC homeowner pays $4,594 a year, about 0.63% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Washington, DC?
Median rent is $1,931 a month, while owning the median home costs about $4,479 a month with 20% down, before maintenance. Renting affordably takes about $77,240 a year under the 30% rule.