Navigating the journey of home buying is a significant and often challenging milestone. A crucial aspect of this process is understanding what you can afford in terms of a monthly mortgage payment, which is closely linked to your income.
Early in your home buying journey, visiting a lender to get prequalified for a mortgage is a wise move. This step will give you an idea of how much you might be able to borrow and what your monthly payments could look like. However, the required income for home ownership can vary greatly depending on your location. For instance, a salary of approximately $60,500 is sufficient in Arkansas, but you would need nearly $176,000 for a similar home in Hawaii1.
A common guideline among financial experts is that your housing costs, primarily your mortgage payments, should not exceed 30% of your monthly income. Using this principle, we’ve analyzed the home prices and mortgage rates in each state to estimate the minimum salary required to afford an average home. Below is a comprehensive list showcasing the cost of housing in various states in 2023.
Alabama
- Minimum Salary $64,163
- Average Home Value: $201,212
- Monthly Mortgage Payment: $1,058.61
- Annual Mortgage Payments: $12,703
Alaska
- Minimum Salary $106,279
- Average Home Value: $357,035
- Monthly Mortgage Payment: $2,065.86
- Annual Mortgage Payments: $24,790
Arizona
- Minimum Salary $96,344
- Average Home Value: $420,605
- Monthly Mortgage Payment: $2,304.00
- Annual Mortgage Payments: $27,648
Arkansas
- Minimum Salary $60,487
- Average Home Value: $176,107
- Monthly Mortgage Payment: $963.21
- Annual Mortgage Payments: $11,559
California
- Minimum Salary $148,908
- Average Home Value: $748,161
- Monthly Mortgage Payment: $4,148.16
- Annual Mortgage Payments: $49,778
Colorado
- Minimum Salary $111,199
- Average Home Value: $552,779
- Monthly Mortgage Payment: $2,977.35
- Annual Mortgage Payments: $35,728
Connecticut
- Minimum Salary $103,999
- Average Home Value: $379,101
- Monthly Mortgage Payment: $2,427.31
- Annual Mortgage Payments: $29,128
Delaware
- Minimum Salary $89,773
- Average Home Value: $355,120
- Monthly Mortgage Payment: $1,927.53
- Annual Mortgage Payments: $23,130
Florida
- Minimum Salary $95,979
- Average Home Value: $398,861
- Monthly Mortgage Payment: $2,271.31
- Annual Mortgage Payments: $27,256
Georgia
- Minimum Salary $80,105
- Average Home Value: $307,375
- Monthly Mortgage Payment: $1,750.34
- Annual Mortgage Payments: $21,004
Hawaii
- Minimum Salary $176,010
- Average Home Value: $971,526
- Monthly Mortgage Payment: $5,046.57
- Annual Mortgage Payments: $60,559
Idaho
- Minimum Salary $97,916
- Average Home Value: $438,088
- Monthly Mortgage Payment: $2,418.02
- Annual Mortgage Payments: $29,016
Illinois
- Minimum Salary $79,065
- Average Home Value: $239,065
- Monthly Mortgage Payment: $1,588.47
- Annual Mortgage Payments: $19,062
Indiana
- Minimum Salary $69,677
- Average Home Value: $221,357
- Monthly Mortgage Payment: $1,247.60
- Annual Mortgage Payments: $14,971
Iowa
- Minimum Salary $70,093
- Average Home Value: $201,546
- Monthly Mortgage Payment: $1,246.79
- Annual Mortgage Payments: $14,961
Kansas
- Minimum Salary $70,204
- Average Home Value: $208,883
- Monthly Mortgage Payment: $1,260.85
- Annual Mortgage Payments: $15,130
Kentucky
- Minimum Salary $64,790
- Average Home Value: $188,438
- Monthly Mortgage Payment: $1,058.92
- Annual Mortgage Payments: $12,707
Louisiana
- Minimum Salary $63,119
- Average Home Value: $182,124
- Monthly Mortgage Payment: $980.95
- Annual Mortgage Payments: $11,771
Maine
- Minimum Salary $93,928
- Average Home Value: $347,071
- Monthly Mortgage Payment: $2,074.73
- Annual Mortgage Payments: $24,897
Maryland
- Minimum Salary $97,091
- Average Home Value: $395,518
- Monthly Mortgage Payment: $2,295.12
- Annual Mortgage Payments: $27,541
Massachusetts
- Minimum Salary $131,536
- Average Home Value: $576,102
- Monthly Mortgage Payment: $3,391.02
- Annual Mortgage Payments: $40,692
Michigan
- Minimum Salary $70,928
- Average Home Value: $212,868
- Monthly Mortgage Payment: $1,295.55
- Annual Mortgage Payments: $15,547
Minnesota
- Minimum Salary $87,301
- Average Home Value: $320,005
- Monthly Mortgage Payment: $1,872.93
- Annual Mortgage Payments: $22,475
Mississippi
- Minimum Salary $59,413
- Average Home Value: $160,346
- Monthly Mortgage Payment: $878.35
- Annual Mortgage Payments: $10,540
Missouri
- Minimum Salary $69,920
- Average Home Value: $226,968
- Monthly Mortgage Payment: $1,307.60
- Annual Mortgage Payments: $15,691
Montana
- Minimum Salary $97,477
- Average Home Value: $427,218
- Monthly Mortgage Payment: $2,375.82
- Annual Mortgage Payments: $28,510
Nebraska
- Minimum Salary $76,661
- Average Home Value: $242,560
- Monthly Mortgage Payment: $1,522.75
- Annual Mortgage Payments: $18,273
Nevada
- Minimum Salary $98,623
- Average Home Value: $429,767
- Monthly Mortgage Payment: $2,336.28
- Annual Mortgage Payments: $28,035
New Hampshire
- Minimum Salary $116,962
- Average Home Value: $442,930
- Monthly Mortgage Payment: $2,909.82
- Annual Mortgage Payments: $34,918
New Jersey
- Minimum Salary $117,735
- Average Home Value: $460,761
- Monthly Mortgage Payment: $3,122.95
- Annual Mortgage Payments: $37,475
New Mexico
- Minimum Salary $77,014
- Average Home Value: $280,010
- Monthly Mortgage Payment: $1,536.17
- Annual Mortgage Payments: $18,434
New York
- Minimum Salary $101,804
- Average Home Value: $396,058
- Monthly Mortgage Payment: $2,410.47
- Annual Mortgage Payments: $28,926
North Carolina
- Minimum Salary $82,358
- Average Home Value: $309,902
- Monthly Mortgage Payment: $1,741.49
- Annual Mortgage Payments: $20,898
North Dakota
- Minimum Salary $76,476
- Average Home Value: $245,226
- Monthly Mortgage Payment: $1,404.61
- Annual Mortgage Payments: $16,855
Ohio
- Minimum Salary $70,976
- Average Home Value: $206,508
- Monthly Mortgage Payment: $1,291.26
- Annual Mortgage Payments: $15,495
Oklahoma
- Minimum Salary $63,890
- Average Home Value: $189,085
- Monthly Mortgage Payment: $1,072.01
- Annual Mortgage Payments: $12,864
Oregon
- Minimum Salary $114,269
- Average Home Value: $491,744
- Monthly Mortgage Payment: $2,812.52
- Annual Mortgage Payments: $33,750
Pennsylvania
- Minimum Salary $78,695
- Average Home Value: $243,386
- Monthly Mortgage Payment: $1,503.60
- Annual Mortgage Payments: $18,043
Rhode Island
- Minimum Salary $106,613
- Average Home Value: $421,742
- Monthly Mortgage Payment: $2,584.36
- Annual Mortgage Payments: $31,012
South Carolina
- Minimum Salary $75,950
- Average Home Value: $272,103
- Monthly Mortgage Payment: $1,470.12
- Annual Mortgage Payments: $17,641
South Dakota
- Minimum Salary $79,649
- Average Home Value: $283,596
- Monthly Mortgage Payment: $1,678.74
- Annual Mortgage Payments: $20,145
Tennessee
- Minimum Salary $75,947
- Average Home Value: $287,793
- Monthly Mortgage Payment: $1,583.67
- Annual Mortgage Payments: $19,004
Texas
- Minimum Salary $83,946
- Average Home Value: $296,285
- Monthly Mortgage Payment: $1,872.37
- Annual Mortgage Payments: $22,468
Utah
- Minimum Salary $107,797
- Average Home Value: $515,621
- Monthly Mortgage Payment: $2,798.69
- Annual Mortgage Payments: $33,584
Vermont
- Minimum Salary $97,731
- Average Home Value: $327,908
- Monthly Mortgage Payment: $2,115.93
- Annual Mortgage Payments: $25,391
Virginia
- Minimum Salary $90,084
- Average Home Value: $363,186
- Monthly Mortgage Payment: $2,056.05
- Annual Mortgage Payments: $24,673
Washington
- Minimum Salary $123,625
- Average Home Value: $577,876
- Monthly Mortgage Payment: $3,276.26
- Annual Mortgage Payments: $39,315
West Virginia
- Minimum Salary $60,980
- Average Home Value: $145,893
- Monthly Mortgage Payment: $787.02
- Annual Mortgage Payments: $9,444
Wisconsin
- Minimum Salary $82,208
- Average Home Value: $262,566
- Monthly Mortgage Payment: $1,652.71
- Annual Mortgage Payments: $19,833
Wyoming
- Minimum Salary $81,223
- Average Home Value: $322,509
- Monthly Mortgage Payment: $1,742.46
- Annual Mortgage Payments: $20,910
- Disclaimer: This article is up to date as of April, 2023. ↩︎