TL;DR
A comprehensive analysis of 389 U.S. metropolitan areas reveals that 106 markets now require household incomes exceeding $100,000 to afford a median-priced home with a 20% down payment. San Jose leads at $368,861 required income, while Pine Bluff, Arkansas remains most affordable at $28,857. The national average stands at $93,804, placing typical American markets just below the six-figure threshold. Use our interactive search tool below to find the exact income required for any metro area.
Ready to Navigate Your Local Market?
Connect with a top-performing agent who understands your area's affordability challenges and can help you find the right home within your budget.
Find a Top Agent Near YouFind Your City's Required Income
Use this interactive tool to search for any U.S. metropolitan area and discover exactly how much household income you need to afford a median-priced home. The calculator factors in a 20% down payment, current mortgage rates, property taxes, and homeowners insurance.
Metro Area Income Lookup
Key Findings: America's Affordability Crisis
The analysis of 389 metropolitan statistical areas paints a stark picture of housing affordability across the United States. More than one-quarter of all markets, 27 percent, have crossed the $100,000 income threshold, a milestone that effectively prices out the majority of American households from homeownership in these regions.
The $340,000 Income Gap
The study reveals a staggering 12.8x gap between the nation's most and least affordable housing markets. San Jose, California tops the list at $368,861, the annual household income required to purchase a median-priced home with a 20 percent down payment while meeting standard lending requirements. At the opposite end, Pine Bluff, Arkansas requires just $28,857.
What This Gap Means
The income required to purchase one home in San Jose could theoretically support home purchases for 13 different families in Pine Bluff. This represents not a unified housing market, but two entirely different economic realities separated by geography.
The national average stands at $93,804, placing the typical American market just below the six-figure threshold. This figure serves as a benchmark, but masks significant regional variation that prospective buyers must understand when evaluating where to purchase.
The $200,000 Club: America's Most Expensive Markets
Eleven metropolitan areas now require annual incomes exceeding $200,000 to afford a median-priced home. Nine of these are located in California, demonstrating the state's outsized role in the national affordability crisis.
These markets represent areas where only top earners, typically dual-income professional households or those with substantial family wealth, can realistically pursue homeownership. For most Americans, these cities require either renting indefinitely or relocating to more affordable regions.
Major Metros at the Tipping Point
Several of America's largest and fastest-growing metropolitan areas have recently crossed or hover just above the $100,000 income threshold. These "tipping point" markets represent regions where middle-class homeownership is becoming increasingly difficult, and where a modest rise in home prices or interest rates could push affordability even further out of reach.
| Metro Area | Required Income | Status |
|---|---|---|
| Las Vegas, NV | $101,923 | Just Crossed |
| Philadelphia, PA | $102,121 | Just Crossed |
| Minneapolis, MN | $102,358 | Just Crossed |
| Dallas, TX | $102,590 | Just Crossed |
| Orlando, FL | $103,465 | Just Crossed |
| Phoenix, AZ | $104,918 | Threshold Metro |
| Nashville, TN | $108,684 | Threshold Metro |
| Raleigh, NC | $109,599 | Threshold Metro |
These markets share common characteristics: strong job growth, population influx from higher-cost regions, and limited housing inventory. For buyers in these areas, working with a top-performing real estate agent who understands local market dynamics becomes critical to finding opportunities within budget constraints.
State-by-State Analysis
California dominates the unaffordability rankings, accounting for nearly 20 percent of all six-figure metros nationwide. The state's combination of high home prices, elevated property taxes in some areas, and insurance costs creates a particularly challenging environment for homebuyers.
States with Most Six-Figure Markets
Beyond California, several other states show concentrations of high-cost markets. Washington State has 10 metros requiring six-figure incomes, driven by the Seattle metropolitan area's tech-fueled economy and spillover effects into surrounding communities. Florida and Oregon each have 7 such metros, while Colorado has 6 and Utah has 5.
This geographic concentration creates distinct regional challenges. Buyers in these states often face the choice of either stretching their budgets significantly or relocating to entirely different parts of the country to achieve homeownership.
Where Homeownership Remains Accessible
The study also identifies 283 metros, representing 73 percent of those analyzed, where households earning less than $100,000 can still afford a median-priced home. These markets, concentrated in the Midwest, Appalachia, and parts of the South, offer entry points for households priced out of coastal and Sun Belt regions.
| Rank | Metro Area | Required Income |
|---|---|---|
| 1 | Pine Bluff, AR | $28,857 |
| 2 | Danville, IL | $32,036 |
| 3 | Weirton, WV | $35,589 |
| 4 | Decatur, IL | $37,676 |
| 5 | Beckley, WV | $37,538 |
| 6 | Wheeling, WV | $37,744 |
| 7 | Charleston, WV | $38,278 |
| 8 | Huntington, WV | $42,434 |
| 9 | Enid, OK | $42,518 |
| 10 | Muncie, IN | $43,339 |
While these markets offer significantly lower barriers to entry, prospective buyers should conduct thorough research on local job markets, economic trends, and long-term growth potential. An experienced local agent can provide invaluable insights into neighborhood-level dynamics that data alone cannot capture.
Exploring Affordable Markets?
A local expert can help you identify neighborhoods with strong fundamentals and avoid common pitfalls in unfamiliar markets.
Connect With a Local ExpertWhat This Means for Buyers
Buyers heading into 2026 face a bifurcated market with three distinct realities depending on their income level and desired location.
High-Cost Metros
$150K+ income required
- Buyers increasingly depend on dual high incomes
- Substantial family wealth often necessary for down payments
- Remote work arrangements enabling coastal salaries with interior living costs
- Consider rent-to-own or shared equity programs
Threshold Metros
$100K-$150K income required
- Accessible to professional dual-income households
- First-time buyers without significant savings face barriers
- Down payment assistance programs may help bridge gaps
- Strategic timing and negotiation skills become crucial
Affordable Metros
Under $100K income required
- Homeownership accessible to broader range of incomes
- May require rethinking location priorities
- Research local job markets and economic outlook
- Remote work has expanded options significantly
Key Strategies for All Markets
- Get pre-approved for a mortgage before searching
- Understand your true home affordability with all costs included
- Work with agents who have proven track records
- Consider emerging neighborhoods before they become expensive
Study Methodology
How We Calculated Income Requirements
This analysis examined 389 U.S. metropolitan statistical areas to calculate the household income required to purchase a median-priced home. The methodology uses standard lending criteria to ensure results reflect real-world qualification requirements.
Key Assumptions
Down Payment: 20 percent of the median home price was assumed, eliminating the need for private mortgage insurance (PMI) and providing a clear baseline for comparison across markets.
Front-End Debt-to-Income Ratio: The study applies a 28 percent front-end DTI ratio, meaning housing costs cannot exceed 28 percent of gross monthly income. This aligns with conventional lending standards and represents a conservative, financially sustainable approach to homeownership.
Housing Costs Included: The calculation incorporates principal and interest on the mortgage, property taxes based on local rates, and homeowners insurance. These components represent the true monthly cost of homeownership beyond just the mortgage payment.
Mortgage Rates: Current prevailing mortgage rates at the time of analysis were applied consistently across all markets.
Monthly Housing Cost = Principal + Interest + Property Taxes + Insurance
Required Annual Income = (Monthly Housing Cost / 0.28) × 12
Where: Monthly Housing Cost = (Median Price × 0.80) at current rate + (Median Price × Local Tax Rate / 12) + (Annual Insurance / 12)
Data Sources
Median home prices are derived from comprehensive real estate transaction data across all 389 metropolitan statistical areas. Property tax rates reflect local assessment practices and millage rates. Insurance estimates are based on regional averages from industry data. Mortgage rates reflect current market conditions as reported by the Federal Reserve Economic Data (FRED).
Important Considerations
These figures represent the minimum gross household income required to qualify for a mortgage on a median-priced home under standard lending criteria. Individual circumstances, including credit scores, existing debts, and lender-specific requirements, may result in different qualification thresholds. Additionally, buyers seeking homes above or below the median price point will face correspondingly different income requirements.
Frequently Asked Questions
A 20 percent down payment was used because it represents the threshold at which borrowers avoid private mortgage insurance (PMI) and typically receive the most favorable loan terms. While many buyers put down less, especially first-time purchasers, the 20 percent figure provides a standardized baseline for comparing affordability across markets. Buyers putting down less than 20 percent would actually need higher incomes to qualify for the same home price due to PMI costs and potentially higher interest rates.
The front-end debt-to-income (DTI) ratio measures housing costs as a percentage of gross monthly income. The 28 percent threshold is a longstanding lending guideline, often called the "28/36 rule," where housing expenses should not exceed 28 percent of income. This includes principal, interest, taxes, and insurance. While some loan programs allow higher ratios, 28 percent represents a financially sustainable level that reduces risk of payment stress and default.
Property taxes significantly impact affordability and vary dramatically by location. States like New Jersey and Texas have some of the highest property tax rates in the nation, while states like Hawaii and Alabama have much lower rates. These differences mean that two homes with identical purchase prices in different states could require substantially different incomes to afford. The study incorporates local property tax rates to provide accurate market-by-market comparisons.
The income requirements focus on the four main components lenders evaluate: principal, interest, taxes, and insurance (PITI). Not included are HOA fees, which can add hundreds of dollars monthly in some communities, utilities, maintenance costs, or the back-end DTI which considers other debts like car loans and credit cards. Buyers should factor in these additional costs when determining their true affordability. A general rule is that total homeownership costs, including maintenance and utilities, often run 1-4 percent of home value annually beyond PITI.
Yes, several strategies can help buyers below the threshold. Looking at homes below median price, exploring down payment assistance programs, considering FHA loans with lower down payment requirements, or targeting neighborhoods adjacent to expensive areas can all expand options. Some buyers also pursue homes that need cosmetic updates, as these often sell below market averages. Working with an experienced agent who knows local inventory and opportunities is essential for finding homes within reach.
Required incomes fluctuate with three main factors: home prices, mortgage rates, and local tax and insurance costs. During periods of rapidly rising home prices or increasing interest rates, income requirements can climb significantly in just months. Conversely, when rates decline or prices stabilize, affordability can improve. The markets most sensitive to changes are those already near the six-figure threshold, where small shifts can push them above or below this psychological barrier.
The most affordable markets tend to share characteristics including slower population growth, economies less tied to high-wage industries, older housing stock, and in some cases, declining or transitioning local industries. Many are in the Midwest and Appalachia where manufacturing jobs have decreased over decades. While these factors create affordability, they also mean buyers should research local economic conditions carefully. That said, remote work has made some affordable markets more attractive by decoupling where you live from where you earn.
Make Your Homebuying Journey Easier
Whether you're in a six-figure market or an affordable region, a top-performing agent can help you navigate the process, negotiate effectively, and find the right home for your budget.
Get Matched With a Top Agent
