Shopping for a home can be one of the most exciting and daunting milestones in your life. 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, which is based on how much income you make.
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 owe each month. Depending upon what state you live in, that salary amount can vary quite widely. For example, you only need to earn about $60,500 in Arkansas to buy an average home, whereas you’d have to earn almost $176,000 to afford one in Hawaii.
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. Keep reading to find out what the cost of housing looks like in your home state.
Alabama: $64,163
- 2023 average home value: $201,212
- Monthly mortgage payment: $1,058.61
- Annual mortgage payments: $12,703
Alaska: $106,279
- 2023 average home value: $357,035
- Monthly mortgage payment: $2,065.86
- Annual mortgage payments: $24,790
Arizona: $96,344
- 2023 average home value: $420,605
- Monthly mortgage payment: $2,304.00
- Annual mortgage payments: $27,648
Arkansas: $60,487
- 2023 average home value: $176,107
- Monthly mortgage payment: $963.21
- Annual mortgage payments: $11,559
California: $148,908
- 2023 average home value: $748,161
- Monthly mortgage payment: $4,148.16
- Annual mortgage payments: $49,778
Colorado: $111,199
- 2023 average home value: $552,779
- Monthly mortgage payment: $2,977.35
- Annual mortgage payments: $35,728
Connecticut: $103,999
- 2023 average home value: $379,101
- Monthly mortgage payment: $2,427.31
- Annual mortgage payments: $29,128
Delaware: $89,773
- 2023 average home value: $355,120
- Monthly mortgage payment: $1,927.53
- Annual mortgage payments: $23,130
Florida: $95,979
- 2023 average home value: $398,861
- Monthly mortgage payment: $2,271.31
- Annual mortgage payments: $27,256
Georgia: $80,105
- 2023 average home value: $307,375
- Monthly mortgage payment: $1,750.34
- Annual mortgage payments: $21,004
Hawaii: $176,010
- 2023 average home value: $971,526
- Monthly mortgage payment: $5,046.57
- Annual mortgage payments: $60,559
Idaho: $97,916
- 2023 average home value: $438,088
- Monthly mortgage payment: $2,418.02
- Annual mortgage payments: $29,016
Illinois: $79,065
- 2023 average home value: $239,065
- Monthly mortgage payment: $1,588.47
- Annual mortgage payments: $19,062
Indiana: $69,677
- 2023 average home value: $221,357
- Monthly mortgage payment: $1,247.60
- Annual mortgage payments: $14,971
Iowa: $70,093
- 2023 average home value: $201,546
- Monthly mortgage payment: $1,246.79
- Annual mortgage payments: $14,961
Kansas: $70,204
- 2023 average home value: $208,883
- Monthly mortgage payment: $1,260.85
- Annual mortgage payments: $15,130
Kentucky: $64,790
- 2023 average home value: $188,438
- Monthly mortgage payment: $1,058.92
- Annual mortgage payments: $12,707
Louisiana: $63,119
- 2023 average home value: $182,124
- Monthly mortgage payment: $980.95
- Annual mortgage payments: $11,771
Maine: $93,928
- 2023 average home value: $347,071
- Monthly mortgage payment: $2,074.73
- Annual mortgage payments: $24,897
Maryland: $97,091
- 2023 average home value: $395,518
- Monthly mortgage payment: $2,295.12
- Annual mortgage payments: $27,541
Massachusetts: $131,536
- 2023 average home value: $576,102
- Monthly mortgage payment: $3,391.02
- Annual mortgage payments: $40,692
Michigan: $70,928
- 2023 average home value: $212,868
- Monthly mortgage payment: $1,295.55
- Annual mortgage payments: $15,547
Minnesota: $87,301
- 2023 average home value: $320,005
- Monthly mortgage payment: $1,872.93
- Annual mortgage payments: $22,475
Mississippi: $59,413
- 2023 average home value: $160,346
- Monthly mortgage payment: $878.35
- Annual mortgage payments: $10,540
Missouri: $69,920
- 2023 average home value: $226,968
- Monthly mortgage payment: $1,307.60
- Annual mortgage payments: $15,691
Montana: $97,477
- 2023 average home value: $427,218
- Monthly mortgage payment: $2,375.82
- Annual mortgage payments: $28,510
Nebraska: $76,661
- 2023 average home value: $242,560
- Monthly mortgage payment: $1,522.75
- Annual mortgage payments: $18,273
Nevada: $98,623
- 2023 average home value: $429,767
- Monthly mortgage payment: $2,336.28
- Annual mortgage payments: $28,035
New Hampshire: $116,962
- 2023 average home value: $442,930
- Monthly mortgage payment: $2,909.82
- Annual mortgage payments: $34,918
New Jersey: $117,735
- 2023 average home value: $460,761
- Monthly mortgage payment: $3,122.95
- Annual mortgage payments: $37,475
New Mexico: $77,014
- 2023 average home value: $280,010
- Monthly mortgage payment: $1,536.17
- Annual mortgage payments: $18,434
New York: $101,804
- 2023 average home value: $396,058
- Monthly mortgage payment: $2,410.47
- Annual mortgage payments: $28,926
North Carolina: $82,358
- 2023 average home value: $309,902
- Monthly mortgage payment: $1,741.49
- Annual mortgage payments: $20,898
North Dakota: $76,476
- 2023 average home value: $245,226
- Monthly mortgage payment: $1,404.61
- Annual mortgage payments: $16,855
Ohio: $70,976
- 2023 average home value: $206,508
- Monthly mortgage payment: $1,291.26
- Annual mortgage payments: $15,495
Oklahoma: $63,890
- 2023 average home value: $189,085
- Monthly mortgage payment: $1,072.01
- Annual mortgage payments: $12,864
Oregon: $114,269
- 2023 average home value: $491,744
- Monthly mortgage payment: $2,812.52
- Annual mortgage payments: $33,750
Pennsylvania: $78,695
- 2023 average home value: $243,386
- Monthly mortgage payment: $1,503.60
- Annual mortgage payments: $18,043
Rhode Island: $106,613
- 2023 average home value: $421,742
- Monthly mortgage payment: $2,584.36
- Annual mortgage payments: $31,012
South Carolina: $75,950
- 2023 average home value: $272,103
- Monthly mortgage payment: $1,470.12
- Annual mortgage payments: $17,641
South Dakota: $79,649
- 2023 average home value: $283,596
- Monthly mortgage payment: $1,678.74
- Annual mortgage payments: $20,145
Tennessee: $75,947
- 2023 average home value: $287,793
- Monthly mortgage payment: $1,583.67
- Annual mortgage payments: $19,004
Texas: $83,946
- 2023 average home value: $296,285
- Monthly mortgage payment: $1,872.37
- Annual mortgage payments: $22,468
Utah: $107,797
- 2023 average home value: $515,621
- Monthly mortgage payment: $2,798.69
- Annual mortgage payments: $33,584
Vermont: $97,731
- 2023 average home value: $327,908
- Monthly mortgage payment: $2,115.93
- Annual mortgage payments: $25,391
Virginia: $90,084
- 2023 average home value: $363,186
- Monthly mortgage payment: $2,056.05
- Annual mortgage payments: $24,673
Washington: $123,625
- 2023 average home value: $577,876
- Monthly mortgage payment: $3,276.26
- Annual mortgage payments: $39,315
West Virginia: $60,980
- 2023 average home value: $145,893
- Monthly mortgage payment: $787.02
- Annual mortgage payments: $9,444
Wisconsin: $82,208
- 2023 average home value: $262,566
- Monthly mortgage payment: $1,652.71
- Annual mortgage payments: $19,833
Wyoming: $81,223
- 2023 average home value: $322,509
- Monthly mortgage payment: $1,742.46
- Annual mortgage payments: $20,910