Income needed to buy a house in New Jersey
A median-priced home in New Jersey costs $496,000. With 20% down you'd need about $150,876 a year, $46,582 more than the state's median household income of $104,294. New Jersey ranks #46 of 51 for the lowest income needed.
Income needed: $150,876 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 $150,876 a year to buy a $496,000 home in New Jersey with $99,200 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $2,627 |
| Property tax | $780 |
| Homeowners insurance | $114 |
| Total | $3,520 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $24,800 | $4,209 | $180,397 |
| 10% | $49,600 | $4,035 | $172,919 |
| 20% | $99,200 | $3,520 | $150,876 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in New Jersey: what's different
- Transfer tax
- About 1% (seller) + fee over $1M
- On the median home
- $4,140
- Homestead break
- ANCHOR benefit
- First-time buyer help
- New Jersey Housing and Mortgage Finance Agency
- Transfer and recording taxes. The seller pays the realty transfer fee, which is charged in brackets and comes to roughly 0.8% to 1.1% of the price on homes between $350,000 and $2 million. On sales over $1 million, the seller also pays a graduated fee of 1% to 3.5% of the whole price, a structure in place since July 10, 2025. On the median New Jersey home ($496,000), that's about $4,140 in realty transfer fee.
- Property tax breaks for your home. New Jersey has no homestead exemption on value. Instead, homeowners with income of $250,000 or less who own and live in the home on October 1 get a state ANCHOR payment, and owners 65 and older can apply for Stay NJ.
- First-time buyer help. The New Jersey Housing and Mortgage Finance Agency offers the Down Payment Assistance Program through participating lenders. 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 New Jersey metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| New York, NY (35% in NJ) | $187,587 | $648,800 | $99,852 |
| Philadelphia, PA (22% in NJ) | $107,073 | $375,100 | $90,850 |
| Trenton, NJ | $135,055 | $436,500 | $104,148 |
| Allentown, PA (13% in NJ) | $96,329 | $332,700 | $83,974 |
With 20% down, the median home takes about $96,329 a year in the Allentown area and $187,587 in the New York area, compared with $150,876 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Metro areas centered in New York or Pennsylvania are included because many of their residents live in New Jersey; the share in the state is in parentheses. Rows are ordered by how many residents live in New Jersey. 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 New Jersey more expensive than most states
- Home prices: the median value of $496,000 is 38% above the U.S. median of $360,600.
- Property tax: about 1.89% of value a year ($780 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,368 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 $271 a month on this loan.
39 states need at least 20% less income to buy their median home. States with a similar income requirement:
- Colorado $148,554
- Washington $158,207
- Utah $137,189
- Massachusetts $165,477
- New Hampshire $132,355
- Oregon $130,842
Frequently asked questions
How much do you need to make to buy a house in New Jersey?
About $150,876 a year for the median home of $496,000 with 20% down at 6.95%. With 10% down it's about $172,919.
What is the property tax rate in New Jersey?
The median New Jersey homeowner pays $9,358 a year, about 1.89% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in New Jersey?
Median rent is $1,800 a month, while owning the median home costs about $3,520 a month with 20% down, before maintenance. Renting affordably takes about $72,000 a year under the 30% rule.