These Are the Only 3 US Cities With Affordable Homes, According to the 30% Rule
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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If it feels like buying a home in a major city is unaffordable, that’s because it most likely is if you’re following a popular budgeting rule of thumb. The “30% rule” states that you should spend roughly 30% or less of your pretax income on housing to leave room for other non-negotiables in your budget.
Yet in 47 of the 50 major U.S. metros, the monthly cost of owning a median-priced home is more than 30% of the area’s median household income, according to a new Realtor.com report. (The analysis assumed a 20% down payment and a typical 30-year fixed mortgage rate of 6.82%.)
Here’s a look at the only three major U.S. metro areas where the average household can afford the costs of owning a typical home.
Pittsburgh
- Median home list price (May 2025): $249,900
- Annual mortgage payment + tax and insurance: $19,970
- Median household income: $72,935
- % of income needed to cover housing costs: 27.4%
Detroit-Warren-Dearborn, Michigan
- Median home list price (May 2025): $270,000
- Annual mortgage payment + tax and insurance: $21,576
- Median household income: $72,493
- % of income needed to cover housing costs: 29.8%
St. Louis, Missouri-Illinois
- Median home list price (May 2025): $299,900
- Annual mortgage payment + tax and insurance: $23,966
- Median household income: $79,869
- % of income needed to cover housing costs: 30%
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