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With the rising cost of living outpacing wage growth, many Americans aspiring to own a home may find their dreams on hold. But here’s some good news – in 42 states, you can purchase a home even if your income is below $100,000 per year.
To determine the minimum salary needed to comfortably afford a home in each state, GOBankingRates calculated the average 2024 home value, monthly mortgage, and 20% down payment, assuming a 30-year fixed-rate mortgage at a 6.82% interest rate. The analysis also considered that housing costs should not exceed 30% of gross income.
Here are the states ranked from highest to lowest salary requirement to afford a home:
50. Hawaii
2024 average home value: $967,270
20% down payment: $193,454
Loan amount: $773,816.01
Monthly mortgage: $5,055.01
Annual mortgage: $60,660.18
Minimum salary needed: $202,200.59
49. California
2024 average home value: $785,333
20% down payment: $157,066.65
Loan amount: $628,266.60
Monthly mortgage: $4,104.20
Annual mortgage: $49,250.42
Minimum salary needed: $164,168.07
48. Massachusetts
2024 average home value: $615,963
20% down payment: $123,192.52
Loan amount: $492,770.08
Monthly mortgage: $3,219.06
Annual mortgage: $38,628.72
Minimum salary needed: $128,762.39
47. Washington
2024 average home value: $589,240
20% down payment: $117,847.99
Loan amount: $471,391.97
Monthly mortgage: $3,079.41
Annual mortgage: $36,952.87
Minimum salary needed: $123,176.22
46. Colorado
2024 average home value: $550,945
20% down payment: $110,188.90
Loan amount: $440,755.61
Monthly mortgage: $2,879.27
Annual mortgage: $34,551.25
Minimum salary needed: $115,170.84
45. Utah
2024 average home value: $519,376
20% down payment: $103,875.13
Loan amount: $415,500.51
Monthly mortgage: $2,714.29
Annual mortgage: $32,571.48
Minimum salary needed: $108,571.61
44. New Jersey
2024 average home value: $518,053
20% down payment: $103,610.60
Loan amount: $414,442.38
Monthly mortgage:
Home Value: $474,549
Down Payment (20%): $94,909.87
Loan Amount: $379,639.47
Monthly Mortgage: $2,480.03
Annual Mortgage: $29,760.30
Minimum Salary Needed: $99,201
State: Montana
2024 Average Home Value: $449,576
Down Payment (20%): $89,915.15
Loan Amount: $359,660.62
Monthly Mortgage: $2,349.51
Annual Mortgage: $28,194.14
Minimum Salary Needed: $93,980.47
State: Rhode Island
2024 Average Home Value: $448,030
Down Payment (20%): $89,605.95
Loan Amount: $358,423.82
Monthly Mortgage: $2,341.43
Annual Mortgage: $28,097.19
Minimum Salary Needed: $93,657.29
State: Idaho
2024 Average Home Value: $443,343
Down Payment (20%): $88,668.56
Loan Amount: $354,674.23
Monthly Mortgage: $2,316.94
Annual Mortgage: $27,803.25
Minimum Salary Needed: $92,677.51
State: Nevada
2024 Average Home Value: $441,049
Down Payment (20%): $88,209.81
Loan Amount: $352,839.23
Monthly Mortgage: $2,304.95
Annual Mortgage: $27,659.40
Minimum Salary Needed: $92,198.02
State: Arizona
2024 Average Home Value: $436,020
Down Payment (20%): $87,204.04
Loan Amount: $348,816.14
Monthly Mortgage: $2,278.67
Annual Mortgage: $27,344.03
Minimum Salary Needed: $91,146.77
State: New York
2024 Average Home Value: $427,542
Down Payment (20%): $85,508.46
Loan Amount: $342,033.83
Monthly Mortgage: $2,234.36
Annual Mortgage: $26,812.36
Minimum Salary Needed: $89,374.53
State: Maryland
2024 Average Home Value: $417,676
Down Payment (20%): $83,535.27
Loan Amount: $334,141.09
Monthly Mortgage: $2,182.80
Annual Mortgage: $26,193.64
Minimum Salary Needed: $87,312.13
State: Florida
2024 Average Home Value: $409,179
Down Payment (20%): $81,835.74
Loan Amount: $327,342.96
Monthly Mortgage: $2,138.39
Annual Mortgage: $25,660
Here is a revised version of the text:
Delaware
Average home value in 2024: $371,809
20% down payment: $74,361.77
Loan amount: $297,447.07
Monthly mortgage: $1,943.10
Annual mortgage: $23,317.16
Minimum salary needed to comfortably afford a home: $77,723.87
Alaska
Average home value in 2024: $362,178
20% down payment: $72,435.50
Loan amount: $289,742.01
Monthly mortgage: $1,892.76
Annual mortgage: $22,713.15
Minimum salary needed to comfortably afford a home: $75,710.51
Wyoming
Average home value in 2024: $333,617
20% down payment: $66,723.43
Loan amount: $266,893.71
Monthly mortgage: $1,743.50
Annual mortgage: $20,922.05
Minimum salary needed to comfortably afford a home: $69,740.18
Minnesota
Average home value in 2024: $328,582
20% down payment: $65,716.41
Loan amount: $262,865.66
Monthly mortgage: $1,717.19
Annual mortgage: $20,606.29
Minimum salary needed to comfortably afford a home: $68,687.63
North Carolina
Average home value in 2024: $323,913
20% down payment: $64,782.67
Loan amount: $259,130.69
Monthly mortgage: $1,692.79
Annual mortgage: $20,313.50
Minimum salary needed to comfortably afford a home: $67,711.68
Georgia
Average home value in 2024: $323,033
20% down payment: $64,606.64
Loan amount: $258,426.54
Monthly mortgage: $1,688.19
Annual mortgage: $20,258.30
Minimum salary needed to comfortably afford a home: $67,527.68
Tennessee
Average home value in 2024: $310,011
20% down payment: $62,002.24
Loan amount: $248,008.95
Monthly mortgage: $1,620.14
Annual mortgage: $19,441.66
Minimum salary needed to comfortably afford a home: $64,805.53
Texas
Average home value in 2024: $299,337
20% down payment: $59,867.32
Loan amount: $239,469.29
Monthly mortgage: $1,564.35
Annual mortgage: $18,772.23
Minimum salary needed to comfortably afford a home: $62,574.09
New Mexico
Home Prices and Affordability in Different States
16. Illinois
– Average home value: $254,709
– 20% down payment: $50,941.71
– Loan amount: $203,766.85
– Monthly mortgage: $1,331.12
– Annual mortgage: $15,973.48
– Minimum salary needed to comfortably afford a home: $53,244.93
15. North Dakota
– Average home value: $252,382
– 20% down payment: $50,476.30
– Loan amount: $201,905.21
– Monthly mortgage: $1,318.96
– Annual mortgage: $15,827.54
– Minimum salary needed to comfortably afford a home: $52,758.47
14. Nebraska
– Average home value: $251,535
– 20% down payment: $50,306.90
– Loan amount: $201,227.60
– Monthly mortgage: $1,314.54
– Annual mortgage: $15,774.42
– Minimum salary needed to comfortably afford a home: $52,581.41
13. Missouri
– Average home value: $238,808
– 20% down payment: $47,761.55
– Loan amount: $191,046.19
– Monthly mortgage: $1,248.02
– Annual mortgage: $14,976.29
– Minimum salary needed to comfortably afford a home: $49,920.98
12. Indiana
– Average home value: $231,278
– 20% down payment: $46,255.59
– Loan amount: $185,022.36
– Monthly mortgage: $1,208.67
– Annual mortgage: $14,504.08
– Minimum salary needed to comfortably afford a home: $48,346.93
11. Michigan
– Average home value: $230,125
– 20% down payment: $46,025.03
– Loan amount: $184,100.13
– Monthly mortgage: $1,202.65
– Annual mortgage: $14,431.79
– Minimum salary needed to comfortably afford a home: $48,105.95
10. Ohio
– Average home value: $218,535
– 20% down payment: $43,707.07
– Loan amount: $174,828.27
– Monthly mortgage: $1,142.08
– Annual mortgage: $13,704.95
– Minimum salary needed to comfortably afford a home: $45,683.18
9. Alabama
– Average home value: $218,004
– 20% down payment: $43,600.75
– Loan amount: $174,402.99
– Monthly mortgage:
Home Value: $195,240
20% Down Payment: $39,047.98
Loan Amount: $156,191.93
Monthly Mortgage: $1,020.34
Annual Mortgage: $12,244.03
Minimum Salary Needed to Comfortably Afford a Home: $40,813.45
2. Mississippi
2024 Average Home Value: $170,653
20% Down Payment: $34,130.66
Loan Amount: $136,522.65
Monthly Mortgage: $891.85
Annual Mortgage: $10,702.14
Minimum Salary Needed to Comfortably Afford a Home: $35,673.80
1. West Virginia
2024 Average Home Value: $155,080
20% Down Payment: $31,016.07
Loan Amount: $124,064.28
Monthly Mortgage: $810.46
Annual Mortgage: $9,725.52
Minimum Salary Needed to Comfortably Afford a Home: $32,418.39
Methodology: This report calculated the average 2024 home values for each state and determined the minimum salary required to comfortably afford a home based on the assumption that housing costs should not exceed 30% of gross income. Monthly mortgage amounts were calculated using a 30-year fixed-rate mortgage with a 20% down payment at a rate of 6.82%, as sourced from Freddie Mac on Apr. 4, 2024, without considering P&I, HOA fees, or property tax. Data was collected up to date as of June 13, 2024.
For more financial insights, visit GOBankingRates.com.
