Income needed to buy a house in Pennsylvania
A median-priced home in Pennsylvania costs $277,600. With 20% down you'd need about $80,370 a year, $2,825 more than the state's median household income of $77,545. Pennsylvania ranks #17 of 51 for the lowest income needed.
Income needed: $80,370 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 $80,370 a year for a $277,600 home in Pennsylvania with $55,520 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 | $1,513 |
| Property tax | $268 |
| Homeowners insurance | $94 |
| Total | $1,875 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $13,880 | $2,269 | $97,241 |
| 10% | $27,760 | $2,169 | $92,939 |
| 20% | $55,520 | $1,875 | $80,370 |
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 Pennsylvania: what's different
- Transfer tax
- 1% state + local tax
- On the median home
- $2,780
- Homestead break
- Homestead exclusion (school tax)
- First-time buyer help
- Pennsylvania Housing Finance Agency
- Transfer and recording taxes. The state realty transfer tax is 1%, and local governments add their own, commonly another 1%. In Philadelphia the combined rate has been 4.578% since July 1, 2025. On the median Pennsylvania home ($277,600), that's about $2,780 in state realty transfer tax.
- Property tax breaks for your home. State gaming revenue funds a homestead exclusion that lowers the school property tax on your main home; the amount depends on the school district. Apply with the county assessment office by March 1.
- First-time buyer help. The Pennsylvania Housing Finance Agency offers the Keystone Home Loan through participating lenders (a first mortgage that can be paired with Keystone Advantage Assistance of up to 4% of the price or $6,000). 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 Pennsylvania metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Philadelphia, PA | $109,587 | $375,100 | $90,850 |
| Pittsburgh, PA | $67,761 | $230,300 | $77,214 |
| Allentown, PA | $98,559 | $332,700 | $83,974 |
| Harrisburg, PA | $81,346 | $282,600 | $80,904 |
With 20% down, the median home takes about $67,761 a year in the Pittsburgh area and $109,587 in the Philadelphia area, compared with $80,370 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 Pennsylvania less expensive than most states
- Home prices: the median value of $277,600 is 23% below the U.S. median of $360,600.
- Property tax: about 1.16% of value a year ($268 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,128 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.
5 states need at least 20% less income to buy their median home. States with a similar income requirement:
- South Carolina $79,734
- Nebraska $82,486
- North Dakota $76,783
- South Dakota $84,417
- New Mexico $76,243
- Wisconsin $86,030
Frequently asked questions
How much do you need to make to buy a house in Pennsylvania?
About $80,370 a year for the median home of $277,600 with 20% down at 7.24%. With 10% down it's about $92,939.
What is the property tax rate in Pennsylvania?
The median Pennsylvania homeowner pays $3,214 a year, about 1.16% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Pennsylvania?
Median rent is $1,252 a month, while owning the median home costs about $1,875 a month with 20% down, before maintenance. Renting affordably takes about $50,080 a year under the 30% rule.