U.S. housing affordability index: the income needed to buy a home
It now takes about $91,349 a year to afford the median U.S. home ($393,300 at 7.18%) — roughly $3,889 more than the median household earns.
- Updated Nov 5, 2026
- Home price: Q3 2026 (Census)
- Rate: week of Nov 5, 2026 (Freddie Mac)
- Income: 2025 (Census)
The median household is about 4% short of the median home.
At the latest price and this week's rate, affording the typical U.S. home takes roughly $91,349 a year under the standard 28% rule. The median household earns about $87,460 (2025) — a gap of $3,889. An affordability index of 95.7 (100 = the median income exactly meets the rule) shows how far the typical buyer sits below the line.
Add the U.S. median property-tax rate (0.91% of value a year) and homeowners insurance (0.40%) and the income needed rises to $109,750 — $2,561 a month. Census ACS 2024 medians; the long-run series below counts principal and interest only.
Income needed vs. what households earn
The two lines tracked closely through the 2010s, then split sharply after 2021 as prices and rates rose together. Hover a year for its numbers. Download the data (CSV)
What the numbers show
Housing affordability is a three-body problem: prices, mortgage rates and incomes. When all three move in step, affordability holds. Since 2021 they did not — the median home price climbed while the 30-year rate roughly doubled, and incomes did not keep pace.
The clearest measure is the income needed to afford the median home: the salary at which the principal-and-interest payment (20% down, 30-year loan) lands at 28% of gross income. Today that is about $91,349. The median household earns about $87,460, leaving a shortfall of roughly $3,889.
Our affordability index expresses that as a single number — median income divided by the income required, times 100. Above 100, the median household's income clears the 28% threshold; below 100, it falls short. It is a benchmark under one rule of thumb, not a lending decision or a measure of comfort for any one household. The series peaked near 141.4 in 2020 (low rates, recovering prices) and now sits at 95.7.
The income needed rose $39,308, from $52,041 to $91,349.
- Higher home prices
- $14,419 37%
- Higher mortgage rates
- $24,889 63%
2019 yearly averages ($320,250 at 3.94%) vs. Q3 2026 price and this week's rate. Each effect is averaged over both orders of change, so the two add up exactly.
Affordability index, 2005–2026
Above the dashed line, the median household's income clears the 28% rule for the median home; below it, it falls short. The index has spent recent years under 100.
What would make homes affordable again?
Move the rate, the price and the down payment and watch the income needed against the $87,460 median. Starts from the median home at this week's rate.
Below 20% down, lenders usually add mortgage insurance, which this scenario leaves out. Tax and insurance use the U.S. medians above.
How much house can you afford on your salary?
The highest price whose payment stays within 28% of gross income at this week's 7.18% rate with 20% down.
| Household income | Monthly budget | Home price · principal & interest | With tax & insurance | Calculator |
|---|---|---|---|---|
| $50,000 a year | $1,167 | $215,273 | $179,180 | $50k in the calculator |
| $60,000 a year | $1,400 | $258,327 | $215,016 | $60k in the calculator |
| $75,000 a year | $1,750 | $322,909 | $268,770 | $75k in the calculator |
| $100,000 a year | $2,333 | $430,546 | $358,360 | $100k in the calculator |
| $125,000 a year | $2,917 | $538,182 | $447,950 | $125k in the calculator |
| $150,000 a year | $3,500 | $645,819 | $537,540 | $150k in the calculator |
Before other debts — lenders also cap total debt payments, usually at 36%–43% of income. Run your own income, debts and down payment in the home affordability calculator.
Income needed by state
On listing prices, with property tax and insurance, the median household falls short of the median home in every state. A different basis from the national figures above — see the full state report.
| State | Income needed | Median income |
|---|---|---|
| Massachusetts | $196,556 | $104,569 |
| California | $191,649 | $100,130 |
| New York | $180,745 | $85,768 |
| Hawaii | $177,304 | $101,581 |
| New Jersey | $170,468 | $104,202 |
| State | Income needed | Median income |
|---|---|---|
| West Virginia | $69,952 | $60,662 |
| Louisiana | $77,658 | $61,038 |
| Indiana | $82,007 | $71,958 |
| Mississippi | $82,747 | $59,301 |
| Ohio | $82,766 | $72,259 |
Realtor.com median listing prices (not sales), Census ACS 2024 tax and insurance, Census SAIPE 2024 median household income.
By the numbers
- +23% — the rise in the median home price since 2019.
- $2,131/mo — principal & interest on the median home today, before taxes and insurance.
- 2020 was the most affordable year in the series (index 141.4); 2023 the least (index 84.5).
- $3,889 — how much more the median home now demands than the median household earns.
What would close the gap
Affordability improves when any leg of the triangle moves: lower rates cut the payment, slower price growth lets incomes catch up, or a larger down payment shrinks the loan. Try each lever in the scenario tool above, test them for your own situation with the Home Affordability Calculator, or see how a rate change moves the payment in the mortgage calculator. First-time buyers can also check down payment assistance by state.
Frequently asked
What is the housing affordability index?
It compares the median household income with the income needed to buy the median-priced home: median income ÷ income needed × 100. At 100 the median household exactly meets the 28% rule with 20% down; below 100 it falls short.
Our index is 95.7 counting principal and interest, or 79.7 with typical property tax and insurance. It is a benchmark, not a lending decision.
How much income do you need to buy a house in 2026?
About $91,349 a year for the median U.S. home ($393,300, Q3 2026) at 7.18% with 20% down, counting principal and interest at 28% of gross income. With typical property tax and insurance it is about $109,750.
By state, on listing prices, it runs from $69,952 in West Virginia to $196,556 in Massachusetts.
How much house can I afford on $50,000 a year?
About $215,273 with 20% down at this week's 7.18% rate, if principal and interest stay within 28% of gross income ($1,167 a month). Counting typical property tax and insurance, it is closer to $179,180. Other debts, a smaller down payment or PMI lower it further.
Why are homes less affordable than in 2019?
The income needed rose from $52,041 (2019 averages) to $91,349. Splitting the change, higher home prices account for about $14,419 (37%) and higher mortgage rates for about $24,889 (63%). Median household income grew too, but not enough to close the gap.
Methodology & sources
| Series | Source | Latest period | Updates |
|---|---|---|---|
| Median sales price of houses sold | Census Bureau (MSPUS) | Q3 2026 | Quarterly |
| 30-year fixed mortgage rate | Freddie Mac (MORTGAGE30US) | Week of Nov 5, 2026 | Weekly |
| Median household income | Census Bureau (MEHOINUSA646N) | 2025 | Annually (September) |
| Property tax & insurance | Census Bureau ACS microdata | 2024 | Annually |
For each year we take the average of the price and rate series, assume a 20% down payment and a 30-year fixed loan, and solve for the income at which principal and interest equal 28% of gross income. The current figures use the latest quarterly price and this week's rate against the latest annual income, so the three cover different periods — each is dated above. The second index adds the U.S. median property-tax rate and insurance premium as a share of home value. Figures are national and leave out mortgage insurance, HOA dues and other debts. Our state report estimates the same thing on a different basis — Realtor.com median listing prices, property tax and insurance in the payment, Census SAIPE income — so its U.S. figure ($115,805) is not directly comparable with the $91,349 here.
Use this data. You're welcome to cite or reproduce these figures and charts with attribution to MortgageLoansCalculator.com. The numbers update automatically as new data is released. Download the yearly series (CSV).
See what you can afford.
Run your own income, debts and rate against today's prices.