How Much of Your Salary You’ll Need To Spend To Afford a House Across America

If you’re thinking about buying a house this year, there is good news and bad news.

With higher mortgage rates and a limited housing supply, it can feel harder than ever to buy a home. However, home prices appear to be flattening out so there is some hope.

The rule of thumb is that you shouldn’t spend more than 30% of your income on housing. Families who spend more than that are considered cost-burdened and may have trouble paying for other necessities, according to the U.S. Department of Housing and Urban Development. Sticking to that rule of thumb, though, can be a challenge in some parts of the country where home prices are high and median household incomes aren’t quite high enough to make the math work, according to a new GOBankingRates study.

Find Out: 

GOBankingRates found what percentage of income would go toward paying a mortgage in each state using the following data:

• The median home value in each state, according to Zillow’s October 2019 housing data
• The median property tax rate in each state, according to Tax-Rates.org
• The national average 30-year fixed mortgage rate, according to the Federal Reserve Bank of St. Louis
• Median monthly and annual household income in each state, according to the Census Bureau

Zillow’s mortgage calculator was used to estimate monthly mortgage payments for each state based on median home values, tax rates and a 20% down payment. Then GOBankingRates calculated what percentage of the median household income that the estimated mortgage payments would be and ranked the states from lowest to highest percentage.

GOBankingRates also calculated the salary needed to afford a home using the mortgage payment estimate and the annual cost of necessities based on data from the Census Bureau and the Missouri Economic Research and Information Center. That number was doubled to find the annual salary needed in every state to satisfy the 50/30/20 rule, which recommends that necessities make up 50% of a household budget.

The study found that, for the most part, a smaller salary is needed to afford a home in the South and Midwest. States in the West and Northeast tend to require higher salaries because home prices are higher. And there are some places where you won’t be able to afford a home unless you earn more than the median income.

• Median home value: 145,893
• 20% down payment: $29,179
• Median property tax rate: 0.55%
• Median annual mortgage: $9,554
• Median annual household income: $50,884
• Annual necessary expenditures: $10,600
• Salary needed to afford a home: $61,199
• Monthly income needed to afford a home: $5,100

Mortgage as a percentage of income: 18.78%

• Median home value: $189,085
• 20% down payment: $37,817
• Median property tax rate: 0.88%
• Median annual mortgage: $13,066
• Median annual household income: $56,956
• Annual necessary expenditures: $32,087
• Salary needed to afford a home: $64,174
• Monthly income needed to afford a home: $5,348

Mortgage as a percentage of income: 22.84%

• Median home value: $210,212
• 20% down payment: $40,242
• Median property tax rate: 0.39%
• Median annual mortgage: $12,855
• Median annual household income: $54,943
• Annual necessary expenditures: $32,233
• Salary needed to afford a home: $64,466
• Monthly income needed to afford a home: $5,372

Mortgage as a percentage of income: 23.4%

• Median home value: $176,107
• 20% down payment: $35,221
• Median property tax rate: 0.64%
• Median annual mortgage: $11,691
• Median annual household income: $52,123
• Annual necessary expenditures: $30,376
• Salary needed to afford a home: $60,752
• Monthly income needed to afford a home: $5,063

Mortgage as a percentage of income: 22.43%

• Median home value: $208,883
• 20% down payment: $41,777
• Median property tax rate: 1.32%
• Median annual mortgage: $15,287
• Median annual household income: $64,521
• Annual necessary expenditures: $35,259
• Salary needed to afford a home: $70,518
• Monthly income needed to afford a home: $5,877

Mortgage as a percentage of income: 23.69%

• Median home value: $201,546
• 20% down payment: $40,309
• Median property tax rate: 1.5%
• Median annual mortgage: $15,113
• Median annual household income: $65,429
• Annual necessary expenditures: $35,198
• Salary needed to afford a home: $70,396
• Monthly income needed to afford a home: $5,866

Mortgage as a percentage of income: 23.1%

• Median home value: $221,357
• 20% down payment: $44,271
• Median property tax rate: 0.84%
• Median annual mortgage: $15,138
• Median annual household income: $61,944
• Annual necessary expenditures: $35,005
• Salary needed to afford a home: $70,010
• Monthly income needed to afford a home: $5,834

Mortgage as a percentage of income: 24.44%

• Median home value: $182,124
• 20% down payment: $36,425
• Median property tax rate: 0.54%
• Median annual mortgage: $11,908
• Median annual household income: $53,571
• Annual necessary expenditures: $31,696
• Salary needed to afford a home: $63,392
• Monthly income needed to afford a home: $5,283

Mortgage as a percentage of income: 22.23%

• Median home value: $160,346
• 20% down payment: $32,069
• Median property tax rate: 0.65%
• Median annual mortgage: $10,661
• Median annual household income: $49,111
• Annual necessary expenditures: $29,827
• Salary needed to afford a home: $59,654
• Monthly income needed to afford a home: $4,971

Mortgage as a percentage of income: 21.71%

• Median home value: $206,508
• 20% down payment: $41,302
• Median property tax rate: 1.58%
• Median annual mortgage: $15,650
• Median annual household income: $61,938
• Annual necessary expenditures: $35,643
• Salary needed to afford a home: $71,287
• Monthly income needed to afford a home: $5,941

Mortgage as a percentage of income: 25.27%

• Median home value: $188,438
• 20% down payment: $37,688
• Median property tax rate: 0.82%
• Median annual mortgage: $12,849
• Median annual household income: $55,454
• Annual necessary expenditures: $32,537
• Salary needed to afford a home: $65,073
• Monthly income needed to afford a home: $5,423

Mortgage as a percentage of income: 23.17%

• Median home value: $226,968
• 20% down payment: $45,394
• Median property tax rate: 0.99%
• Median annual mortgage: $15,862
• Median annual household income: $61,043
• Annual necessary expenditures: $35,131
• Salary needed to afford a home: $70,261
• Monthly income needed to afford a home: $5,855

Mortgage as a percentage of income: 25.98%

• Median home value: $272,103
• 20% down payment: $54,421
• Median property tax rate: 0.56%
• Median annual mortgage: $17,846
• Median annual household income: $58,234
• Annual necessary expenditures: $38,179
• Salary needed to afford a home: $76,359
• Monthly income needed to afford a home: $6,363

Mortgage as a percentage of income: 30.65%

• Median home value: $212,868
• 20% down payment: $42,574
• Median property tax rate: 1.38%
• Median annual mortgage: $15,707
• Median annual household income: $63,202
• Annual necessary expenditures: 35,624
• Salary needed to afford a home: $71,249
• Monthly income needed to afford a home: $5,937

Mortgage as a percentage of income: 24.85%

• Median home value: $287,793
• 20% down payment: $59,599
• Median property tax rate: 0.68%
• Median annual mortgage: $19,220
• Median annual household income: $58,516
• Annual necessary expenditures: $38,190
• Salary needed to afford a home: $76,379
• Monthly income needed to afford a home: $6,365

Mortgage as a percentage of income: 32.85%

• Median home value: $243,386
• 20% down payment: $58,677
• Median property tax rate: 1.49%
• Median annual mortgage: $118,226
• Median annual household income: $67,587
• Annual necessary expenditures: $39,451
• Salary needed to afford a home: $79,061
• Monthly income needed to afford a home: $6,588

Mortgage as a percentage of income: 26.97%

• Median home value: $239,065
• 20% down payment: $47,813
• Median property tax rate: 2.05%
• Median annual mortgage: $19,241
• Median annual household income: $72,563
• Annual necessary expenditures: $39,713
• Salary needed to afford a home: $79,425
• Monthly income needed to afford a home: $6,619

Mortgage as a percentage of income: 26.52%

• Median home value: $307,375
• 20% down payment: $61,475
• Median property tax rate: 0.91%
• Median annual mortgage: $21,235
• Median annual household income: $65,030
• Annual necessary expenditures: $40,284
• Salary needed to afford a home: $80,567
• Monthly income needed to afford a home: $6,714

Mortgage as a percentage of income: 32.65%

• Median home value: $242,560
• 20% down payment: $48,512
• Median property tax rate: 1.61%
• Median annual mortgage: $18,455
• Median annual household income: $66,644
• Annual necessary expenditures: $28,513
• Salary needed to afford a home: $77,025
• Monthly income needed to afford a home: $6,419

Mortgage as a percentage of income: 27.69%

• Median home value: $355,120
• 20% down payment: $71,024
• Median property tax rate: 0.59%
• Median annual mortgage: $23,397
• Median annual household income: $72,724
• Annual necessary expenditures: $45,154
• Salary needed to afford a home: $90,307
• Monthly income needed to afford a home: $7,526

Mortgage as a percentage of income: 32.17%

• Median home value: $309,902
• 20% down payment: $61,980
• Median property tax rate: 0.82%
• Median annual mortgage: $21,131
• Median annual household income: $60,516
• Annual necessary expenditures: $41,412
• Salary needed to afford a home: $82,824
• Monthly income needed to afford a home: $6,902

Mortgage as a percentage of income: 34.92%

• Median home value: $395,518
• 20% down payment: $579,104
• Median property tax rate: 1.04%
• Median annual mortgage: $27,839
• Median annual household income: $91,431
• Annual necessary expenditures: $48,843
• Salary needed to afford a home: $97,686
• Monthly income needed to afford a home: $8,140

Mortgage as a percentage of income: 30.45%

• Median home value: $320,005
• 20% down payment: $64,001
• Median property tax rate: 1.1%
• Median annual mortgage: $22,716
• Median annual household income: $77,706
• Annual necessary expenditures: $43,891
• Salary needed to afford a home: $87,782
• Monthly income needed to afford a home: $7,315

Mortgage as a percentage of income: 29.23%

• Median home value: $363,186
• 20% down payment: $72,637
• Median property tax rate: 0.87%
• Median annual mortgage: $24,946
• Median annual household income: $80,615
• Annual necessary expenditures: $45,315
• Salary needed to afford a home: $90,630
• Monthly income needed to afford a home: $7,553

Mortgage as a percentage of income: 30.94%

• Median home value: $245,226
• 20% down payment: $49,045
• Median property tax rate: .95%
• Median annual mortgage: $17,040
• Median annual household income: $68,131
• Annual necessary expenditures: $38,423
• Salary needed to afford a home: $76,845
• Monthly income needed to afford a home: $6,404

Mortgage as a percentage of income: 25.01%

• Median home value: $322,509
• 20% down payment: $64,502
• Median property tax rate: 0.56%
• Median annual mortgage: $21,152
• Median annual household income: $68,002
• Annual necessary expenditures: $40,854
• Salary needed to afford a home: $81,708
• Monthly income needed to afford a home: $6,809

Mortgage as a percentage of income: 31.10%

• Median home value: $379,101
• 20% down payment: $75,820
• Median property tax rate: 1.76%
• Median annual mortgage: $29,413
• Median annual household income: $83,572
• Annual necessary expenditures: $52,385
• Salary needed to afford a home: $104,569
• Monthly income needed to afford a home: $8,714

Mortgage as a percentage of income: 35.19%

• Median home value: $262,566
• 20% down payment: $52,513
• Median property tax rate: 1.63%
• Median annual mortgage: $20,030
• Median annual household income: $67,080
• Annual necessary expenditures: $41,301
• Salary needed to afford a home: $82,603
• Monthly income needed to afford a home: $6,884

Mortgage as a percentage of income: 29.86%

• Median home value: $283,596
• 20% down payment: $56,719
• Median property tax rate: 1.18%
• Median annual mortgage: $20,358
• Median annual household income: $63,920
• Annual necessary expenditures: $40,038
• Salary needed to afford a home: $80,075
• Monthly income needed to afford a home: $6,673

Mortgage as a percentage of income: 31.85%

• Median home value: $296,285
• 20% down payment: $59,257
• Median property tax rate: 1.66%
• Median annual mortgage: $22,691
• Median annual household income: $67,321
• Annual necessary expenditures: $42,196
• Salary needed to afford a home: $84,392
• Monthly income needed to afford a home: $7,033

Mortgage as a percentage of income: 33.71%

• Median home value: $280,010
• 20% down payment: $56,002
• Median property tax rate: 0.66%
• Median annual mortgage: $18,645
• Median annual household income: $54,020
• Annual necessary expenditures: $38,717
• Salary needed to afford a home: $77,435
• Monthly income needed to afford a home: $6,453

Mortgage as a percentage of income: 34.51%

• Median home value: $327,908
• 20% down payment: $65,582
• Median property tax rate: 1.82%
• Median annual mortgage: $25,638
• Median annual household income: $67,574
• Annual necessary expenditures: $49,112
• Salary needed to afford a home: $98,224
• Monthly income needed to afford a home: $8,185

Mortgage as a percentage of income: 37.88%

• Median home value: $420,605
• 20% down payment: $84,121
• Median property tax rate: 0.65%
• Median annual mortgage: $27,964
• Median annual household income: $65,913
• Annual necessary expenditures: $48,488
• Salary needed to afford a home: $96,976
• Monthly income needed to afford a home: $8,081

Mortgage as a percentage of income: 42.43%

• Median home value: $427,218
• 20% down payment: $85,444
• Median property tax rate: 0.75%
• Median annual mortgage: $28,831
• Median annual household income: $60,560
• Annual necessary expenditures: $49,060
• Salary needed to afford a home: $98,119
• Monthly income needed to afford a home: $8,177

Mortgage as a percentage of income: 47.61%

• Median home value: $398,861
• 20% down payment: $77,772
• Median property tax rate: 0.91%
• Median annual mortgage: $27,556
• Median annual household income: $61,777
• Annual necessary expenditures: $48,289
• Salary needed to afford a home: $96,549
• Monthly income needed to afford a home: $8,048

Mortgage as a percentage of income: 44.60%

• Median home value: $347,071
• 20% down payment: $69,412
• Median property tax rate: 1.25%
• Median annual mortgage: $25,158
• Median annual household income: $63,182
• Annual necessary expenditures: $47,225
• Salary needed to afford a home: $94,450
• Monthly income needed to afford a home: $7,871

Mortgage as a percentage of income: 39.82%

• Median home value: $442,930
• 20% down payment: $88,586
• Median property tax rate: 1.96%
• Median annual mortgage: $35,251
• Median annual household income: $83,449
• Annual necessary expenditures: $48,814
• Salary needed to afford a home: $117,628
• Monthly income needed to afford a home: $9,802

Mortgage as a percentage of income: 42.44%

• Median home value: $367,035
• 20% down payment: $71,407
• Median property tax rate: 1.02%
• Median annual mortgage: $25,059
• Median annual household income: $80,287
• Annual necessary expenditures: $53,408
• Salary needed to afford a home: $106,815
• Monthly income needed to afford a home: $8,901

Mortgage as a percentage of income: 31.21%

• Median home value: $515,621
• 20% down payment: $103,124
• Median property tax rate: 0.59%
• Median annual mortgage: $33,972
• Median annual household income: $79,133
• Annual necessary expenditures: $52,286
• Salary needed to afford a home: $108,573
• Monthly income needed to afford a home: $9,048

Mortgage as a percentage of income: 42.94%

• Median home value: $438,088
• 20% down payment: $87,618
• Median property tax rate: 0.70%
• Median annual mortgage: $29,346
• Median annual household income: $63,377
• Annual necessary expenditures: $49,288
• Salary needed to afford a home: $98,575
• Monthly income needed to afford a home: $8,215

Mortgage as a percentage of income: 46.3%

• Median home value: $460,761
• 20% down payment: $92,152
• Median property tax rate: 2.21%
• Median annual mortgage: $37,822
• Median annual household income: $89,703
• Annual necessary expenditures: $59,214
• Salary needed to afford a home: $118,428
• Monthly income needed to afford a home: $9,869

Mortgage as a percentage of income: 42.16%

• Median home value: $396,058
• 20% down payment: $79,212
• Median property tax rate: 1.38%
• Median annual mortgage: $29,223
• Median annual household income: $75,157
• Annual necessary expenditures: $51,200
• Salary needed to afford a home: $102,400
• Monthly income needed to afford a home: $8,533

Mortgage as a percentage of income: 38.88%

• Median home value: $421,742
• 20% down payment: $84,348
• Median property tax rate: 1.43%
• Median annual mortgage: $31,329
• Median annual household income: $74,489
• Annual necessary expenditures: $53,624
• Salary needed to afford a home: $107,248
• Monthly income needed to afford a home: $8,937

Mortgage as a percentage of income: 42.06%

• Median home value: $429,767
• 20% down payment: $85,953
• Median property tax rate: 0.60%
• Median annual mortgage: $28,359
• Median annual household income: $65,686
• Annual necessary expenditures: $49,635
• Salary needed to afford a home: $99,269
• Monthly income needed to afford a home: $8,272

Mortgage as a percentage of income: 43.17%

• Median home value: $552,779
• 20% down payment: $110,556
• Median property tax rate: 0.54%
• Median annual mortgage: $36,144
• Median annual household income: $80,184
• Annual necessary expenditures: $56,015
• Salary needed to afford a home: $112,031
• Monthly income needed to afford a home: $9,336

Mortgage as a percentage of income: 45.08%

• Median home value: $576,102
• 20% down payment: $115,220
• Median property tax rate: 1.14%
• Median annual mortgage: $41,125
• Median annual household income: $89,026
• Annual necessary expenditures: $66,201
• Salary needed to afford a home: $132,402
• Monthly income needed to afford a home: $11,034

Mortgage as a percentage of income: 46.19%

• Median home value: $577,876
• 20% down payment: $115,575
• Median property tax rate: 0.88%
• Median annual mortgage: $39,750
• Median annual household income: $82,400
• Annual necessary expenditures: $62,247
• Salary needed to afford a home: $124,494
• Monthly income needed to afford a home: $10,375

Mortgage as a percentage of income: 48.24%

• Median home value: $491,744
• 20% down payment: $98,349
• Median property tax rate: 0.94%
• Median annual mortgage: $34,120
• Median annual household income: $70,084
• Annual necessary expenditures: $57,504
• Salary needed to afford a home: $115,009
• Monthly income needed to afford a home: $9,584

Mortgage as a percentage of income: 48.68%

• Median home value: $971,526
• 20% down payment: $195,305
• Median property tax rate: 0.31%
• Median annual mortgage: $61,289
• Median annual household income: $88,005
• Annual necessary expenditures: $88,736
• Salary needed to afford a home: $177,471
• Monthly income needed to afford a home: $14,789

Mortgage as a percentage of income: 69.84%

• Median home value: $748,161
• 20% down payment: $149,632
• Median property tax rate: 0.73%
• Median annual mortgage: $50,341
• Median annual household income: $84,097
• Annual necessary expenditures: $75,016
• Salary needed to afford a home: $150,033
• Monthly income needed to afford a home: $12,503

Mortgage as a percentage of income: 59.86%

Methodology:  GOBankingRates used their in-house mortgage calculator to create (1) estimated monthly and annual mortgage payments for each state based on: (2) the state’s median home value according to Zillow’s 2023 (through March 2023) home value data, (3) each state’s median property tax rate according to Tax-Rates.org, (4) a 20% down payment estimate, and (5) the national average 30-year fixed mortgage interest rate as of 04/20/23 according to the Federal Reserve Bank of St. Louis. GOBankingRates then compiled information on (6) each state’s median monthly and annual household income according to the 2021 American Community Survey. This allowed (7) the percent of total household income that the median mortgage would cost in each state to be calculated. States were then ranked according to factor 7, with #1 being the state where the median annual mortgage is smallest in proportion to the median annual household income. Information on the necessary annual salary to cover necessities according to the 50/30/20 rule is provided as supplemental data. We found the average annual cost of necessities (including groceries, utilities, transportation, and healthcare) in the U.S. from the 2021 Consumer Expenditure Survey and adjusted these estimates to the state level by multiplying each figure by the Missouri Economic Research and Information Center’s 2022 cost of living indices for each category in each state. We then added our annual mortgage estimate to find the total expected annual cost of necessities in every state. We then doubled this number to find the annual salary one would need in every state to satisfy the 50/30/20 rule, which recommends that necessities comprise 50% of one’s total budget.

Laura Beck contributed to the reporting of this article.