Avoid These 7 ZIP Codes if You’re Looking To Move From Renting to Buying

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Making the jump from renting to owning is a big step, and in certain ZIP codes, it’s almost impossible.

While there’s no hard and fast rule, the common recommendation from mortgage professionals and expert websites like Zillow is that mortgage payments stay less than 30% of someone’s income. Otherwise, there would be little room for other expenses.

MovingPlace analyzed ZIP codes across the U.S. to find areas where renting may still be a safer option than buying. The site looked at mortgage-to-income ratios, which show how much of a typical monthly income would go toward a mortgage. The higher the ratio, the harder it is for renters to transition to buying without stretching finances to the breaking point.

The seven ZIP codes below all have ratios above 90%, meaning monthly mortgage payments would be close to or exceed average local income.

1. Brooklyn 11204

• Median home value: $1,198,458
• Average monthly mortgage payment: $7,617
• Average monthly renter income: $5,643
• Mortgage-to-income ratio: 135%
• Average monthly rent: $2,622
• Rent-to-income ratio: 46.5%

2. Bronx 10453

• Median home value: $587,327
• Average monthly mortgage payment: $3,767
• Average monthly renter income: $3,208
• Mortgage-to-income ratio: 117.4%
• Average monthly rent: $1,595
• Rent-to-income ratio: 49.7%

3. Redmond 98052

• Median home value: $1,324,787
• Average monthly mortgage payment: $7,148
• Average monthly renter income: $7,126
• Mortgage-to-income ratio: 100.3%
• Average monthly rent: $2,800
• Rent-to-income ratio: 39.3%

4. New York 10025

• Median home value: $1,106,176
• Average monthly mortgage payment: $7,036
• Average monthly renter income: $7,512
• Mortgage-to-income ratio: 93.7%
• Average monthly rent: $4,200
• Rent-to-income ratio: 55.9%

5. Ridgewood 11385

• Median home value: $864,244
• Average monthly mortgage payment: $5,511
• Average monthly renter income: $5,948
• Mortgage-to-income ratio: 92.7%
• Average monthly rent: $3,000
• Rent-to-income ratio: 50.4%

6. Bothell 98012

• Median home value: $989,943
• Average monthly mortgage payment: $5,357
• Average monthly renter income: $5,871
• Mortgage-to-income ratio: 91.3%
• Average monthly rent: $3,200
• Rent-to-income ratio: 54.5%

7. Chino Hills 91709

• Median home value: $975,400
• Average monthly mortgage payment: $4,690
• Average monthly renter income: $5,201
• Mortgage-to-income ratio: 90.2%
• Average monthly rent: $3,715
• Rent-to-income ratio: 71.4%

Planning Before Making the Jump

For renters in these ZIP codes, moving from renting to owning would likely put mortgage payments far above or just slightly below, their current income. Of course there will be exceptions, but for most households, it would leave little room for day-to-day expenses, let alone any unexpected costs.

In many cases, it’s smarter to continue renting while keeping an eye on more affordable suburbs or nearby areas where mortgage payments are manageable. Increasing income would also help, whether that’s changing jobs or starting a new business. And of course, timing and location matter: waiting until markets shift or looking at different ZIP codes altogether can make the transition from renting to owning more realistic and sustainable.

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