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

By Jami Farkas

November 2, 2021

monkeybusinessimages / Getty Images/iStockphoto

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.

Read: Tips To Get Your Mortgage Payments as Low as Possible
See: 32 Insider Tips for Buying and Selling a House

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: $51,718

• 2021 average home value: $168,427
• Monthly mortgage payment: $626.57
• Annual mortgage payments: $7,519

Alaska: $85,592

• 2021 average home value: $316,130
• Monthly mortgage payment: $1,336.74
• Annual mortgage payments: $16,041

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Arizona: $72,124

• 2021 average home value: $354,142
• Monthly mortgage payment: $1,385.33
• Annual mortgage payments: $16,624

Arkansas: $48,443

• 2021 average home value: $147,986
• Monthly mortgage payment: $580.12
• Annual mortgage payments: $6,961

California: $111,904

• 2021 average home value: $678,107
• Monthly mortgage payment: $2,709.12
• Annual mortgage payments: $32,509

Learn: 17 Dumb Home-Buying Mistakes That Hurt Your Wallet

Colorado: $83,376

• 2021 average home value: $490,848
• Monthly mortgage payment: $1,887.37
• Annual mortgage payments: $22,648

Connecticut: $82,391

• 2021 average home value: $329,114
• Monthly mortgage payment: $1,597.34
• Annual mortgage payments: $19,168

Delaware: $69,655

• 2021 average home value: $301,343
• Monthly mortgage payment: $1,176.28
• Annual mortgage payments: $14,115

Check Out: Tax Breaks Every First-Time Homebuyer Should Know About

Florida: $70,335

• 2021 average home value: $307,903
• Monthly mortgage payment: $1,271.16
• Annual mortgage payments: $15,254

Georgia: $60,699

• 2021 average home value: $243,681
• Monthly mortgage payment: $1,008.06
• Annual mortgage payments: $12,097

Hawaii: $129,604

• 2021 average home value: $824,769
• Monthly mortgage payment: $3,027.00
• Annual mortgage payments: $36,324

Idaho: $74,118

• 2021 average home value: $394,381
• Monthly mortgage payment: $1,559.17
• Annual mortgage payments: $18,710

Illinois: $66,753

• 2021 average home value: $231,696
• Monthly mortgage payment: $1,170.86
• Annual mortgage payments: $14,050

Indiana: $54,909

• 2021 average home value: $184,258
• Monthly mortgage payment: $753.02
• Annual mortgage payments: $9,036

Iowa: $56,450

• 2021 average home value: $166,243
• Monthly mortgage payment: $765.29
• Annual mortgage payments: $9,184

Read: Common Real Estate Myths That You Need To Know

Kansas: $56,429

• 2021 average home value: $176,666
• Monthly mortgage payment: $791.19
• Annual mortgage payments: $9,494

Kentucky: $52,761

• 2021 average home value: $167,627
• Monthly mortgage payment: $680.87
• Annual mortgage payments: $8,170

Louisiana: $53,766

• 2021 average home value: $188,748
• Monthly mortgage payment: $724.19
• Annual mortgage payments: $8,690

Maine: $72,317

• 2021 average home value: $296,130
• Monthly mortgage payment: $1,306.46
• Annual mortgage payments: $15,678

Maryland: $77,288

• 2021 average home value: $370,235
• Monthly mortgage payment: $1,574.78
• Annual mortgage payments: $18,897

Massachusetts: $98,246

• 2021 average home value: $521,346
• Monthly mortgage payment: $2,247.93
• Annual mortgage payments: $26,975

See: The Cost To Own a 3-Bedroom Home in Every State

Michigan: $59,731

• 2021 average home value: $202,476
• Monthly mortgage payment: $911.84
• Annual mortgage payments: $10,942

Minnesota: $70,724

• 2021 average home value: $299,030
• Monthly mortgage payment: $1,281.88
• Annual mortgage payments: $15,383

Mississippi: $47,703

• 2021 average home value: $140,039
• Monthly mortgage payment: $551.30
• Annual mortgage payments: $6,616

Missouri: $56,137

• 2021 average home value: $193,310
• Monthly mortgage payment: $814.18
• Annual mortgage payments: $9,770

The Opposite: States Where You’re Most Likely To Live Paycheck to Paycheck

Montana: $71,113

• 2021 average home value: $350,020
• Monthly mortgage payment: $1,410.04
• Annual mortgage payments: $16,920

Nebraska: $60,462

• 2021 average home value: $204,861
• Monthly mortgage payment: $961.85
• Annual mortgage payments: $11,542

Nevada: $75,566

• 2021 average home value: $375,203
• Monthly mortgage payment: $1,455.21
• Annual mortgage payments: $17,462

New Hampshire: $85,567

• 2021 average home value: $373,429
• Monthly mortgage payment: $1,862.21
• Annual mortgage payments: $22,347

New Jersey: $91,228

• 2021 average home value: $411,255
• Monthly mortgage payment: $2,133.09
• Annual mortgage payments: $25,597

New Mexico: $59,438

• 2021 average home value: $242,693
• Monthly mortgage payment: $947.34
• Annual mortgage payments: $11,368

New York: $76,172

• 2021 average home value: $320,388
• Monthly mortgage payment: $1,440.18
• Annual mortgage payments: $17,282

North Carolina: $63,064

• 2021 average home value: $248,242
• Monthly mortgage payment: $1,008.31
• Annual mortgage payments: $12,100

North Dakota: $65,300

• 2021 average home value: $254,062
• Monthly mortgage payment: $1,053.12
• Annual mortgage payments: $12,637

See: What You Can Rent on a Minimum-Wage Salary in Every State

Ohio: $48,015

• 2021 average home value: $181,096
• Monthly mortgage payment: $847.25
• Annual mortgage payments: $10,167

Oklahoma: $51,369

• 2021 average home value: $150,685
• Monthly mortgage payment: $618.33
• Annual mortgage payments: $7,420

Oregon: $87,735

• 2021 average home value: $447,716
• Monthly mortgage payment: $1,867.03
• Annual mortgage payments: $22,404

Pennsylvania: $66,367

• 2021 average home value: $232,273
• Monthly mortgage payment: $1,069.26
• Annual mortgage payments: $12,831

Rhode Island: $83,980

• 2021 average home value: $373,101
• Monthly mortgage payment: $1,698.90
• Annual mortgage payments: $20,387

South Carolina: $59,798

• 2021 average home value: $227,993
• Monthly mortgage payment: $878.56
• Annual mortgage payments: $10,543

South Dakota: $61,827

• 2021 average home value: $241,877
• Monthly mortgage payment: $1,055.02
• Annual mortgage payments: $12,660

Read: What Homes Will Be Worth in Your State by the End of 2021

Tennessee: $56,724

• 2021 average home value: $229,299
• Monthly mortgage payment: $902.70
• Annual mortgage payments: $10,832

Texas: $64,429

• 2021 average home value: $244,605
• Monthly mortgage payment: $1,160.68
• Annual mortgage payments: $13,928

Utah: $80,369

• 2021 average home value: $461,136
• Monthly mortgage payment: $1,788.50
• Annual mortgage payments: $21,462

Vermont: $78,258

• 2021 average home value: $301,615
• Monthly mortgage payment: $1,471.42
• Annual mortgage payments: $17,657

Virginia: $69,680

• 2021 average home value: $329,631
• Monthly mortgage payment: $1,355.37
• Annual mortgage payments: $16,264

Washington: $94,136

• 2021 average home value: $517,839
• Monthly mortgage payment: $2,129.24
• Annual mortgage payments: $25,551

West Virginia: $46,582

• 2021 average home value: $115,898
• Monthly mortgage payment: $446.61
• Annual mortgage payments: $5,359

Beware: The Opposite: States Where You’re Most Likely To Live Paycheck to Paycheck

Wisconsin: $65,065

• 2021 average home value: $230,729
• Monthly mortgage payment: $1,081.38
• Annual mortgage payments: $12,977

Wyoming: $62,351

• 2021 average home value: $273,483
• Monthly mortgage payment: $1,049.30
• Annual mortgage payments: $12,592

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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 (3.09%) for every state and multiplying that by 12 (one 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 2020 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 2021. Necessity costs were totaled to find 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% of the total income needed, and the amount specified for discretionary spending is equal to 30% of the total income needed. All data was collected and is up to date as of Oct. 25, 2021.

About the Author

Jami Farkas

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.