This Is the Salary You Need To Afford the Average Home in Your State

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Before you shop for a home, it’s important to find out just how much you can afford to pay for your monthly mortgage payment. Visiting a lender to get prequalified for a home loan is one of the first things you should do to learn the amount you might be eligible to borrow and the amount you’d owe each month.

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For you to own a home, and live comfortably, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30% of your monthly income. With this rule of thumb in mind, GOBankingRates looked at home prices and mortgage rates in every state and estimated the minimum salary needed to afford the average home.

Alabama: $64,222

  • 2021 average home value: $201,656
  • Monthly mortgage payment: $1,059.68
  • Annual mortgage payments: $12,716

Alaska: $102,513

  • 2021 average home value: $332,437
  • Monthly mortgage payment: $1,915.91
  • Annual mortgage payments: $22,991

Arizona: $98,929

  • 2021 average home value: $441,026
  • Monthly mortgage payment: $2,402.08
  • Annual mortgage payments: $28,825
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Arkansas: $60,151

  • 2021 average home value: $174,123
  • Monthly mortgage payment: $949.82
  • Annual mortgage payments: $11,398

California: $153,805

  • 2021 average home value: $785,652
  • Monthly mortgage payment: $4,344.58
  • Annual mortgage payments: $52,135

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Colorado: $114,889

  • 2021 average home value: $490,848
  • Monthly mortgage payment: $3,145.02
  • Annual mortgage payments: $37,740

Connecticut: $102,703

  • 2021 average home value: $372,658
  • Monthly mortgage payment: $2,380.62
  • Annual mortgage payments: $28,567

Delaware: $88,663

  • 2021 average home value: $347,728
  • Monthly mortgage payment: $1,891.03
  • Annual mortgage payments: $22,692

Florida: $95,717

  • 2021 average home value: $397,367
  • Monthly mortgage payment: $2,250.38
  • Annual mortgage payments: $27,005

Georgia: $79,932

  • 2021 average home value: $308,459
  • Monthly mortgage payment: $1,749.44
  • Annual mortgage payments: $20,993

Hawaii: $181,266

  • 2021 average home value: $1,012,084
  • Monthly mortgage payment: $5,267.80
  • Annual mortgage payments: $63,214

Idaho: $101,664

  • 2021 average home value: $468,187
  • Monthly mortgage payment: $2,569.52
  • Annual mortgage payments: $30,834

Illinois: $82,274

  • 2021 average home value: $262,698
  • Monthly mortgage payment: $1,730.71
  • Annual mortgage payments: $20,769

Indiana: $68,527

  • 2021 average home value: $216,473
  • Monthly mortgage payment: $1,216.92
  • Annual mortgage payments: $14,603

Iowa: $68,353

  • 2021 average home value: $190,046
  • Monthly mortgage payment: $1,166.55
  • Annual mortgage payments: $13,999

Kansas: $69,582

  • 2021 average home value: $203,630
  • Monthly mortgage payment: $1,224.47
  • Annual mortgage payments: $14,694

Kentucky: $66,147

  • 2021 average home value: $194,198
  • Monthly mortgage payment: $1,086.84
  • Annual mortgage payments: $13,042

Louisiana: $66,987

  • 2021 average home value: $210,980
  • Monthly mortgage payment: $1,133.29
  • Annual mortgage payments: $13,600
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Maine: $94,248

  • 2021 average home value: $351,259
  • Monthly mortgage payment: $2,088.79
  • Annual mortgage payments: $25,065

Maryland: $98,650

  • 2021 average home value: $407,849
  • Monthly mortgage payment: $2,360.73
  • Annual mortgage payments: $28,329

Massachusetts: $131,904

  • 2021 average home value: $593,274
  • Monthly mortgage payment: $3,468.61
  • Annual mortgage payments: $41,623

Michigan: $73,093

  • 2021 average home value: $228,841
  • Monthly mortgage payment: $1,381.80
  • Annual mortgage payments: $16,582

Minnesota: $88,607

  • 2021 average home value: $332,282
  • Monthly mortgage payment: $1,934.40
  • Annual mortgage payments: $23,213

Mississippi: $60,159

  • 2021 average home value: $162,815
  • Monthly mortgage payment: $890.85
  • Annual mortgage payments: $10,690

Missouri: $69,528

  • 2021 average home value: $225,808
  • Monthly mortgage payment: $1,297.62
  • Annual mortgage payments: $15,571

Montana: $98,610

  • 2021 average home value: $436,375
  • Monthly mortgage payment: $2,427.65
  • Annual mortgage payments: $29,132

Nebraska: $74,544

  • 2021 average home value: $235,764
  • Monthly mortgage payment: $1,468.79
  • Annual mortgage payments: $17,625

Nevada: $103,420

  • 2021 average home value: $466,756
  • Monthly mortgage payment: $2,526.66
  • Annual mortgage payments: $30,320

New Hampshire: $115,167

  • 2021 average home value: $440,717
  • Monthly mortgage payment: $2,874.16
  • Annual mortgage payments: $34,490

New Jersey: $118,727

  • 2021 average home value: $467,759
  • Monthly mortgage payment: $3,144.07
  • Annual mortgage payments: $37,729

New Mexico: $77,936

  • 2021 average home value: $288,250
  • Monthly mortgage payment: $1,567.57
  • Annual mortgage payments: $18,811

New York: $97,524

  • 2021 average home value: $367,223
  • Monthly mortgage payment: $2,214.32
  • Annual mortgage payments: $26,572

North Carolina: $82,239

  • 2021 average home value: $310,569
  • Monthly mortgage payment: $1,738.12
  • Annual mortgage payments: $20,857

North Dakota: $79,735

  • 2021 average home value: $277,872
  • Monthly mortgage payment: $1,578.28
  • Annual mortgage payments: $18,939
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Ohio: $70,941

  • 2021 average home value: $208,655
  • Monthly mortgage payment: $1,296.42
  • Annual mortgage payments: $15,557

Oklahoma: $62,647

  • 2021 average home value: $177,979
  • Monthly mortgage payment: $1,003.49
  • Annual mortgage payments: $12,042

Oregon: $117,544

  • 2021 average home value: $519,395
  • Monthly mortgage payment: $2,963.10
  • Annual mortgage payments: $35,557

Pennsylvania: $81,125

  • 2021 average home value: $262,698
  • Monthly mortgage payment: $1,612.50
  • Annual mortgage payments: $19,350

Rhode Island: $108,176

  • 2021 average home value: $432,324
  • Monthly mortgage payment: $2,632.09
  • Annual mortgage payments: $31,585

South Carolina: $77,599

  • 2021 average home value: $283,988
  • Monthly mortgage payment: $1,530.19
  • Annual mortgage payments: $18,362

South Dakota: $79,878

  • 2021 average home value: $287,137
  • Monthly mortgage payment: $1,693.12
  • Annual mortgage payments: $20,317

Tennessee: $75,930

  • 2021 average home value: $289,085
  • Monthly mortgage payment: $1,581.75
  • Annual mortgage payments: $18,981

Texas: $84,601

  • 2021 average home value: $303,546
  • Monthly mortgage payment: $1,906.24
  • Annual mortgage payments: $22,875

Utah: $114,938

  • 2021 average home value: $570,266
  • Monthly mortgage payment: $3,086.99
  • Annual mortgage payments: $37,044

Vermont: $101,295

  • 2021 average home value: $352,648
  • Monthly mortgage payment: $2,261.62
  • Annual mortgage payments: $27,139

Virginia: $91,220

  • 2021 average home value: $372,792
  • Monthly mortgage payment: $2,104.99
  • Annual mortgage payments: $25,260

Washington: $128,641

  • 2021 average home value: $619,223
  • Monthly mortgage payment: $3,496.48
  • Annual mortgage payments: $41,958

West Virginia: $59,660

  • 2021 average home value: $136,981
  • Monthly mortgage payment: $738.09
  • Annual mortgage payments: $8,857

Wisconsin: $80,943

  • 2021 average home value: $260,805
  • Monthly mortgage payment: $1,622.62
  • Annual mortgage payments: $19,471

Wyoming: $80,082

  • 2021 average home value: $315,824
  • Monthly mortgage payment: $1,696.47
  • Annual mortgage payments: $20,358

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Jordan Rosenfeld contributed to the reporting for this article.

Methodology: For this piece GOBankingRates first surveyed monthly living expenses in all 50 states. The cost-of-living comparison included the following factors: (1) yearly mortgage by assuming 20% down payment, 30-year fixed loan, current interest rate as sourced from St. Louis Federal Reserve (6.29%) for every state and multiplying that by 12 (1 year), sourced from Zillow’s home value index and determined using CNET Mortgage Calculator formula; (2) annual necessities cost (grocery, utilities, healthcare, and transportation) by taking the 2021 Bureau of Labor Statistics consumer expenditure survey and factored out by the Missouri Economic Research and Information Center’s cost of living index for quarter 2 of 2022. Necessity costs were totaled the annual dollar cost of necessities in each state. This dollar amount for necessities was then doubled to find the (3) actual annual income needed to live comfortably in the state, assuming a person is following the 50-30-20 budgeting guideline, which requires an income double the cost of necessities. The amount of money specified for savings is equal to 20 percent of the total income needed, and the amount specified for discretionary spending is equal to 30 percent of the total income needed. All data was collected and is up to date as of September 28, 2022.

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About the Author

Jami Farkas holds a communications degree from California State University, Fullerton, and has worked as a reporter or editor at daily newspapers in all four corners of the United States. She brings to GOBankingRates experience as a sports editor, business editor, religion editor, digital editor — and more. With a passion for real estate, she passed the real estate licensing exam in her state and is still weighing whether to take the plunge into selling homes — or just writing about selling homes.
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