10 States Where You Need the Least Amount of Income To Buy a Home in 2025

Some Americans may believe that they must first earn six-figure salaries before they can explore buying homes. However, recent findings from GOBankingRates revealed this is not necessarily the case. There are at least 10 states where a modest monthly income is enough money to comfortably afford becoming a homeowner.

To find out which states the lowest income buys a home in, GOBankingRates looked at every state’s average single-family home value, assumed a 20% down payment and calculated the average mortgage costs using the average 30-year fixed mortgage rate of 6.87% from the Federal Reserve. Assuming that housing costs cannot exceed 30% of gross monthly income and using each state’s average mortgage cost, we then calculated the minimum monthly and annual income necessary to comfortably afford a home.

Keep reading to see which 10 states you need the least amount of income in 2025 to buy a home.

• Average single-family home value: $163,193
• 20% down payment: $32,639
• Loan amount: $130,554 
• Average monthly mortgage cost: $964
• Minimum monthly income to comfortably afford a home: $3,215
• Minimum annual income to comfortably afford a home: $38,575

• Average single-family home value: $176,933
• 20% down payment: $35,387
• Loan amount: $141,546
• Average monthly mortgage cost: $1,046
• Minimum monthly income to comfortably afford a home: $3,485
• Minimum annual income to comfortably afford a home: $41,822

• Average single-family home value: $198,094
• 20% down payment: $39,619
• Loan amount: $158,475
• Average monthly mortgage cost: $1,171
• Minimum monthly income to comfortably afford a home: $3,902
• Minimum annual income to comfortably afford a home: $46,824

• Average single-family home value: $205,311
• 20% down payment: $41,062
• Loan amount: $164,249
• Average monthly mortgage cost: $1,213
• Minimum monthly income to comfortably afford a home: $4,044
• Minimum annual income to comfortably afford a home: $48,530

• Average single-family home value: $208,734
• 20% down payment: $41,747
• Loan amount: $166,987
• Average monthly mortgage cost: $1,233
• Minimum monthly income to comfortably afford a home: $4,112
• Minimum annual income to comfortably afford a home: $49,339

• Average single-family home value: $208,745
• 20% down payment: $41,749
• Loan amount: $166,996
• Average monthly mortgage cost: $1,234
• Minimum monthly income to comfortably afford a home: $4,112
• Minimum annual income to comfortably afford a home: $49,342

• Average single-family home value: $218,773
• 20% down payment: $43,755
• Loan amount: $175,019
• Average monthly mortgage cost: $1,293
• Minimum monthly income to comfortably afford a home: $4,309
• Minimum annual income to comfortably afford a home: $51,712

• Average single-family home value: $222,475
• 20% down payment: $44,495
• Loan amount: $177,980
• Average monthly mortgage cost: $1,315
• Minimum monthly income to comfortably afford a home: $4,382
• Minimum annual income to comfortably afford a home: $52,587

• Average single-family home value: $225,396
• 20% down payment: $45,079
• Loan amount: $180,317
• Average monthly mortgage cost: $1,332
• Minimum monthly income to comfortably afford a home: $4,440
• Minimum annual income to comfortably afford a home: $53,278

• Average single-family home value: $229,027
• 20% down payment: $45,805
• Loan amount: $183,222
• Average monthly mortgage cost: $1,353
• Minimum monthly income to comfortably afford a home: $4,511
• Minimum annual income to comfortably afford a home: $54,136

Methodology: For this study, GOBankingRates found the average single-family home value for each state from January 2025, as sourced from Zillow Home Value Index. Using the average home value, assuming a 20% down payment, and using the most recent national average 30-year fixed mortgage rate of 6.87% from Feb. 13, 2025, as sourced from the Federal Reserve Economic Data, the average mortgage was calculated. Using the average mortgage and average expenditure costs, the average cost of living was calculated. Using the average mortgage cost for each state and assuming that the housing costs cannot exceed 30%, the minimum income to comfortably afford a home was calculated. All data was collected on and is up to date as of Feb. 18, 2025.