Research ReportJune 2026·50 states · 6.5% fixed 30yr · 20% down

2026 Mortgage Affordability Index:Income Required to Buy a Home in Every State

A buyer putting 20% down on the median-priced home in California needs $194,143 in annual gross income 4.6× more than the $41,829 required in West Virginia. This report analyses the full cost of homeownership across all 50 states using Q1 2026 median home prices, state effective property tax rates, and the 28% front-end DTI rule used by most lenders.

By Gary Sing · Garypedia.com · Data: Q1 2026 · Rate: 6.5% fixed 30-year · Down payment: 20% · Insurance: 0.45%/yr

Key findings

Most affordable state

West Virginia

$41,829/yr to qualify

Least affordable state

California

$194,143/yr to qualify

Affordability spread

4.6×

most vs least affordable

National average needed

$91,507

at 6.5%, 20% down

Highest property tax/mo

New Jersey

$836/mo in taxes

Lowest tax rate

Hawaii (0.27%)

$162/mo in taxes

All 50 states

Income required to buy the median home · Sorted by income needed (ascending) · Click any column to re-sort

#StateMedian PriceQ1 202620% Downcash neededMo. P&I30yr @ 6.5%Mo. Taxproperty taxMo. TotalP&I + tax + insIncome Needed28% DTI rule
1West VirginiaWV$165,000$33,000$834$80$976$41,829
2MississippiMS$165,000$33,000$834$91$987$42,300
3ArkansasAR$176,000$35,200$890$91$1,047$44,871
4LouisianaLA$198,000$39,600$1,001$91$1,166$49,971
5OklahomaOK$200,000$40,000$1,011$152$1,238$53,057
6AlabamaAL$218,000$43,600$1,102$73$1,257$53,871
7KentuckyKY$210,000$42,000$1,062$140$1,281$54,900
8IowaIA$207,000$41,400$1,047$262$1,387$59,443
9MissouriMO$228,000$45,600$1,153$173$1,412$60,514
10IndianaIN$235,000$47,000$1,188$147$1,423$60,986
11KansasKS$218,000$43,600$1,102$243$1,427$61,157
12OhioOH$225,000$45,000$1,138$298$1,520$65,143
13MichiganMI$235,000$47,000$1,188$276$1,552$66,514
14NebraskaNE$235,000$47,000$1,188$319$1,595$68,357
15North DakotaND$262,000$52,400$1,325$210$1,633$69,986
16South CarolinaSC$285,000$57,000$1,441$133$1,681$72,043
17New MexicoNM$292,000$58,400$1,477$158$1,745$74,786
18WyomingWY$308,000$61,600$1,557$149$1,822$78,086
19IllinoisIL$255,000$51,000$1,289$440$1,825$78,214
20WisconsinWI$268,000$53,600$1,355$375$1,831$78,471
21PennsylvaniaPA$282,000$56,400$1,426$350$1,882$80,657
22South DakotaSD$298,000$59,600$1,507$283$1,902$81,514
23DelawareDE$325,000$65,000$1,643$154$1,919$82,243
24North CarolinaNC$325,000$65,000$1,643$209$1,974$84,600
25GeorgiaGA$325,000$65,000$1,643$225$1,990$85,286
26TennesseeTN$335,000$67,000$1,694$179$1,999$85,671
27AlaskaAK$320,000$64,000$1,618$317$2,055$88,071
28TexasTX$315,000$63,000$1,593$420$2,131$91,329
29ArizonaAZ$365,000$73,000$1,846$183$2,166$92,829
30MinnesotaMN$345,000$69,000$1,745$313$2,187$93,729
31MaineME$355,000$71,000$1,795$322$2,250$96,429
32IdahoID$380,000$76,000$1,922$219$2,283$97,843
33NevadaNV$400,000$80,000$2,023$183$2,356$100,971
34MontanaMT$390,000$78,000$1,972$241$2,359$101,100
35VirginiaVA$392,000$78,400$1,982$261$2,390$102,429
36FloridaFL$405,000$81,000$2,048$300$2,500$107,143
37MarylandMD$400,000$80,000$2,023$357$2,530$108,429
38VermontVT$375,000$75,000$1,896$569$2,606$111,686
39ConnecticutCT$385,000$77,000$1,947$574$2,665$114,214
40OregonOR$435,000$87,000$2,200$352$2,715$116,357
41New YorkNY$415,000$83,000$2,099$484$2,739$117,386
42Rhode IslandRI$425,000$85,000$2,149$496$2,804$120,171
43UtahUT$485,000$97,000$2,453$226$2,861$122,614
44New HampshireNH$415,000$83,000$2,099$667$2,922$125,229
45ColoradoCO$500,000$100,000$2,528$217$2,933$125,700
46New JerseyNJ$450,000$90,000$2,276$836$3,281$140,614
47WashingtonWA$545,000$109,000$2,756$395$3,355$143,786
48MassachusettsMA$565,000$113,000$2,857$527$3,596$154,114
49HawaiiHI$720,000$144,000$3,641$162$4,073$174,557
50CaliforniaCA$750,000$150,000$3,793$456$4,530$194,143

State names link to pre-filled mortgage calculators with local property tax rates.

Regional breakdown

Average income needed to buy the median home within each US census region

Northeast

$117,833

average income needed

Most affordablePennsylvania$80,657
Least affordableMassachusetts$154,114

South

$72,498

average income needed

Most affordableWest Virginia$41,829
Least affordableMaryland$108,429

Midwest

$70,336

average income needed

Most affordableIowa$59,443
Least affordableMinnesota$93,729

West

$116,219

average income needed

Most affordableNew Mexico$74,786
Least affordableCalifornia$194,143

Notable findings

New Jersey's property taxes are the defining cost.

At 2.23% effective rate, New Jersey buyers pay $836/month in property taxes on the $450K median home — more than the entire monthly P&I payment in most affordable states. This is the single largest carrying cost gap between states.

No-income-tax states carry a property tax trade-off.

Texas offers no state income tax but a 1.60% effective property tax rate — adding roughly $420/month to the payment. Tennessee, by contrast, pairs no state income tax with a 0.64% property tax rate, making it one of the most tax-efficient markets nationally for homeowners.

Hawaii's low tax rate doesn't rescue affordability.

At 0.27%, Hawaii has the lowest property tax rate in the nation. But a $720,000 median home still requires $174,557/year to qualify — the 2nd highest income requirement nationally, behind only California.

The Midwest hides a property tax penalty.

States like Illinois (2.07%), Nebraska (1.63%), Wisconsin (1.68%), and Ohio (1.59%) have below-national-average home prices but property tax rates significantly above the national average (~1.1%). Buyers focused on sticker price often underestimate the ongoing monthly cost in these states.

Methodology

Median home pricesState-level estimates based on National Association of Realtors (NAR) data and Zillow Research median sale price data through Q1 2026. Figures represent the median sale price across all property types statewide.
Property tax ratesEffective rates (actual taxes paid as a percentage of assessed home value) sourced from Tax Foundation 2024–2025 state-by-state data. Effective rates account for exemptions, circuit breakers, and local variation blended to a state-wide average.
Monthly P&ICalculated using the standard amortisation formula M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1] with a 6.5% annual fixed rate (r = 0.065 ÷ 12), 30-year term (n = 360), and 80% LTV (20% down payment).
Homeowners insuranceEstimated at 0.45% of home value annually ÷ 12, consistent with national average premiums. Coastal flood risk, wildfire exposure, and hurricane zones can significantly exceed this estimate.
Income required(Monthly PITI) ÷ 0.28 × 12. The 28% figure is the front-end debt-to-income ratio limit used by Fannie Mae and most conventional lenders. This is the minimum qualifying income and does not account for existing debt obligations, which reduce qualifying capacity further.
Not includedPrivate mortgage insurance (not required with 20% down), HOA fees, maintenance, closing costs, or local income and sales taxes.

Press & media

This data is free to reproduce in editorial content with attribution. Interactive state-level mortgage calculators are available for all 50 states.

AttributionSource: Garypedia.com Mortgage Affordability Index 2026
Canonical URLhttps://garypedia.com/research/mortgage-affordability-2026
LicenseCreative Commons Attribution 4.0 (CC BY 4.0) — free to reproduce with attribution
Media contactUse the contact form at garypedia.com/contact — for data questions, interviews, or custom state pulls

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