Income needed to buy a house in Illinois
A median-priced home in Illinois costs $280,700. With 20% down you'd need about $87,942 a year, $4,731 more than the state's median household income of $83,211. Illinois ranks #23 of 51 for the lowest income needed.
Income needed: $87,942 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 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $87,942 a year to buy a $280,700 home in Illinois with $56,140 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,486 |
| Property tax | $450 |
| Homeowners insurance | $116 |
| Total | $2,052 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $14,035 | $2,442 | $104,648 |
| 10% | $28,070 | $2,343 | $100,416 |
| 20% | $56,140 | $2,052 | $87,942 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Illinois: what's different
- Transfer tax
- 0.1% state + 0.05% county
- On the median home
- $280
- Homestead break
- Up to $6,000–$10,000 off EAV
- First-time buyer help
- Illinois Housing Development Authority (IHDA)
- Transfer and recording taxes. The state transfer tax is 50 cents per $500 of the price (0.1%), counties may add 25 cents per $500, and home-rule cities such as Chicago charge their own tax on top. On the median Illinois home ($280,700), that's about $280 in state transfer tax.
- Property tax breaks for your home. The general homestead exemption cuts a home's equalized assessed value by up to $10,000 in Cook County, $8,000 in the counties that border it and $6,000 everywhere else. Seniors get a further exemption.
- First-time buyer help. The Illinois Housing Development Authority (IHDA) offers Access Forgivable through participating lenders (4% of the price, up to $6,000, forgiven over 10 years). 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 Illinois metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Chicago, IL | $105,125 | $339,700 | $90,770 |
| St. Louis, MO (24% in IL) | $77,642 | $268,300 | $81,679 |
With 20% down, the median home takes about $77,642 a year in the St. Louis area and $105,125 in the Chicago area, compared with $87,942 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. The metro area centered in Missouri is included because many of its residents live in Illinois; the share in the state is in parentheses. Rows are ordered by how many residents live in Illinois. 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 Illinois about average among states
- Home prices: the median value of $280,700 is 22% below the U.S. median of $360,600.
- Property tax: about 1.92% of value a year ($450 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,387 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 $153 a month on this loan.
10 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 Illinois?
About $87,942 a year for the median home of $280,700 with 20% down at 6.95%. With 10% down it's about $100,416.
What is the property tax rate in Illinois?
The median Illinois homeowner pays $5,399 a year, about 1.92% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Illinois?
Median rent is $1,322 a month, while owning the median home costs about $2,052 a month with 20% down, before maintenance. Renting affordably takes about $52,880 a year under the 30% rule.