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

Alaska: $102,513

Arizona: $98,929

Arkansas: $60,151

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California: $153,805

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Colorado: $114,889

Connecticut: $102,703

Delaware: $88,663

Florida: $95,717

Georgia: $79,932

Hawaii: $181,266

Idaho: $101,664

Illinois: $82,274

Indiana: $68,527

Iowa: $68,353

Kansas: $69,582

Kentucky: $66,147

Louisiana: $66,987

Maine: $94,248

Maryland: $98,650

Massachusetts: $131,904

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Michigan: $73,093

Minnesota: $88,607

Mississippi: $60,159

Missouri: $69,528

Montana: $98,610

Nebraska: $74,544

Nevada: $103,420

New Hampshire: $115,167

New Jersey: $118,727

New Mexico: $77,936

New York: $97,524

North Carolina: $82,239

North Dakota: $79,735

Ohio: $70,941

Oklahoma: $62,647

Oregon: $117,544

Pennsylvania: $81,125

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Rhode Island: $108,176

South Carolina: $77,599

South Dakota: $79,878

Tennessee: $75,930

Texas: $84,601

Utah: $114,938

Vermont: $101,295

Virginia: $91,220

Washington: $128,641

West Virginia: $59,660

Wisconsin: $80,943

Wyoming: $80,082

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Jordan Rosenfeld contributed to the reporting for this article.

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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 (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.