Income needed to buy a house in Louisiana
A median-priced home in Louisiana costs $223,200. With 20% down you'd need about $64,649 a year, $3,663 more than the state's median household income of $60,986. Louisiana ranks #6 of 51 for the lowest income needed.
Income needed: $64,649 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 $64,649 a year for a $223,200 home in Louisiana with $44,640 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 | $1,217 |
| Property tax | $99 |
| Homeowners insurance | $193 |
| Total | $1,508 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $11,160 | $1,825 | $78,214 |
| 10% | $22,320 | $1,744 | $74,755 |
| 20% | $44,640 | $1,508 | $64,649 |
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 Louisiana: what's different
- Transfer tax
- None ($325 in New Orleans)
- On the median home
- $0
- Homestead break
- $75,000 of market value
- First-time buyer help
- Louisiana Housing Corporation
- Transfer and recording taxes. There's no state transfer tax, and the state constitution has barred new ones since 2011. Orleans Parish still charges a flat $325 documentary tax on most recorded sales.
- Property tax breaks for your home. The homestead exemption covers the first $7,500 of assessed value, which is $75,000 of market value because homes are assessed at 10%. Outside Orleans Parish it doesn't apply to city taxes. Apply with your parish assessor.
- First-time buyer help. The Louisiana Housing Corporation offers HomeStart through participating lenders. Check its site for income and price limits.
- Insurance. When private insurers won't write a policy, Louisiana Citizens Property Insurance Corporation is the insurer of last resort, and by law it charges more than private insurers. The Louisiana Fortify Homes Program gives grants of up to $10,000 to replace a roof to the FORTIFIED standard, built to resist hurricane winds.
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 Louisiana metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| New Orleans, LA | $76,697 | $267,900 | $62,373 |
| Baton Rouge, LA | $72,160 | $252,000 | $69,293 |
With 20% down, the median home takes about $72,160 a year in the Baton Rouge area and $76,697 in the New Orleans area, compared with $64,649 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 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 Louisiana less expensive than most states
- Home prices: the median value of $223,200 is 38% below the U.S. median of $360,600.
- Property tax: about 0.53% of value a year ($99 a month on the median home).
- Insurance: owners with a mortgage paid a median $2,312 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 $123 a month on this loan.
1 state needs at least 20% less income to buy its median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Louisiana?
About $64,649 a year for the median home of $223,200 with 20% down at 7.24%. With 10% down it's about $74,755.
What is the property tax rate in Louisiana?
The median Louisiana homeowner pays $1,187 a year, about 0.53% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Louisiana?
Median rent is $1,064 a month, while owning the median home costs about $1,508 a month with 20% down, before maintenance. Renting affordably takes about $42,560 a year under the 30% rule.