GOBankingRates

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

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

Alaska: $85,592

Afford More Rent: 11 Best Lucrative Side Business Ideas

Arizona: $72,124

Save for Your Future

Arkansas: $48,443

California: $111,904

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

Colorado: $83,376

Connecticut: $82,391

Delaware: $69,655

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

Florida: $70,335

Georgia: $60,699

Hawaii: $129,604

Idaho: $74,118

Illinois: $66,753

Indiana: $54,909

Iowa: $56,450

Read: Common Real Estate Myths That You Need To Know

Kansas: $56,429

Kentucky: $52,761

Louisiana: $53,766

Save for Your Future

Maine: $72,317

Maryland: $77,288

Massachusetts: $98,246

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

Michigan: $59,731

Minnesota: $70,724

Mississippi: $47,703

Missouri: $56,137

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

Montana: $71,113

Nebraska: $60,462

Nevada: $75,566

New Hampshire: $85,567

New Jersey: $91,228

New Mexico: $59,438

New York: $76,172

North Carolina: $63,064

Save for Your Future

North Dakota: $65,300

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

Ohio: $48,015

Oklahoma: $51,369

Oregon: $87,735

Pennsylvania: $66,367

Rhode Island: $83,980

South Carolina: $59,798

South Dakota: $61,827

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

Tennessee: $56,724

Texas: $64,429

Utah: $80,369

Vermont: $78,258

Virginia: $69,680

Washington: $94,136

West Virginia: $46,582

Save for Your Future

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

Wisconsin: $65,065

Wyoming: $62,351

More From GOBankingRates

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.

Last updated: Nov. 2, 2021