Affording a home in 2026 takes more income than ever. To purchase the median priced home in the US — currently $405,300 — a household needs to earn $99,874 per year. That figure is based on a 6.37% 30-year fixed mortgage rate, a 20% down payment, and the standard 28/36 affordability rule that limits housing costs to 28% of gross income.
Where you live makes an enormous difference. In West Virginia you can afford the median home on roughly $43,000 a year, while Hawaii requires more than $200,000. Use the interactive map and state breakdowns below to see exactly where you stand.
For full affordability planning and scenario frameworks, start with the Mortgage Affordability hub.
Income needed to afford a home by state
In 17 states, buyers now need to earn at least $100,000 just to afford the median priced home. Here’s how income requirements break down across every state:
Income Needed to Afford a Home by State
What impacts home affordability?
Home affordability comes down to one key question: what percentage of your paycheck does your mortgage consume each month? The widely-used mortgage affordability rule says that number should stay at or below 28% of your gross monthly income — a threshold known as the front-end debt-to-income ratio. Housing costs in this context include principal, interest, property taxes, and insurance (PITI).
The full 28/36 rule also limits total debt (including car payments, student loans, and credit cards) to no more than 36% of gross income. For this analysis, we focus on the 28% housing limit to determine the minimum income required to affordably cover each state’s median mortgage payment.
How we calculated income needed by state
Every figure on this page is built on the same consistent set of assumptions:
- Home price: Zillow Home Value Index (ZHVI) for each state, February 2026
- Down payment: 20% of the home price
- Loan term: 30-year fixed mortgage
- Mortgage rate: 6.37% (Freddie Mac PMMS, April 2026)
- Property tax: 0.07% of the home value per month
- Homeowners insurance: $66/month
- Affordability rule: 28/36 — housing costs ≤ 28% of gross monthly income
Calculation breakdown
Starting from the median US home price of $405,300 with a 20% down payment, here’s how the $99,874 income figure is derived:
- $2,331 monthly PITI payment
- ÷ 28% (28/36 rule front-end limit)
- = $8,325 gross monthly income needed
- × 12 months
- = $99,874 annual income needed
You can plug in your own numbers using our mortgage affordability calculator.
Most expensive states to buy a home
Hawaii: $200,120
Hawaii tops the list by a wide margin. With a median home value (ZHVI) of $823,970 as of February 2026, buyers need a household income of at least $200,120 to stay within the 28% housing cost threshold. Limited land, a remote island location, and persistent demand from both residents and investors keep Hawaii prices in a league of their own.
California: $186,009
California is the second most income-intensive state for homebuyers. The statewide ZHVI sits at $765,036, requiring an income of $186,009 — nearly double the national figure. Major metro areas like San Francisco and Los Angeles drive the statewide average, but even mid-tier California markets are out of reach for most earners.
Massachusetts: $156,642
Massachusetts ranks third, with its ZHVI at $642,387 and an income requirement of $156,642. Strong demand from Boston-area tech and biotech workers, elite universities, and limited housing supply have pushed the state well above the national average.
Most affordable states to buy a home
West Virginia: $43,481
West Virginia is the most affordable state for homebuyers in the country. With a ZHVI of $169,780 — less than a quarter of Hawaii’s — buyers only need $43,481 in annual income to comfortably cover the mortgage payment. For buyers priced out of high-cost coastal markets, West Virginia offers some of the most accessible entry points to homeownership in the nation.
Mississippi: $48,297
Mississippi is the second most affordable state, with a ZHVI of $189,895 and an income requirement of $48,297. Like West Virginia, Mississippi benefits from broad rural land availability and a lower overall cost of living.
Louisiana: $52,855
Louisiana rounds out the three most affordable states with a ZHVI of $208,930 and an income threshold of $52,855. Buyers in most Louisiana markets face far less competition and far lower price points than their counterparts on the coasts.
Source: FRED, Zillow
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