This Is the Salary You Need To Afford the Average Home in Your State
Before you buy a home, it's important to find out if you can afford the monthly mortgage payment.
Read: Tips To Get Your Mortgage Payments as Low as Possible
See: 32 Insider Tips for Buying and Selling a House
To do this, 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.
Last updated: Oct. 12, 2021
Alabama: $51,104
Monthly mortgage payment: $601
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Alaska: $84,326
Monthly mortgage payment: $1,284
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Arizona: $70,436
Monthly mortgage payment: $1,315
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Arkansas: $47,912
Monthly mortgage payment: $558
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California: $109,525
Monthly mortgage payment: $2,610
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Colorado: $79,527
Monthly mortgage payment: $1,727
Connecticut: $81,063
Monthly mortgage payment: $1,542
Delaware: $68,808
Monthly mortgage payment: $1,141
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Florida: $68,915
Monthly mortgage payment: $1,212
Georgia: $59,641
Monthly mortgage payment: $964
Hawaii: $126,508
Monthly mortgage payment: $2,898
Idaho: $71,762
Monthly mortgage payment: $1,461
Illinois: $66,060
Monthly mortgage payment: $1,142
Indiana: $54,212
Monthly mortgage payment: $724
Iowa: $55,939
Monthly mortgage payment: $744
Kansas:$55,752
Monthly mortgage payment: $763
Kentucky: $52,189
Monthly mortgage payment: $657
Louisiana: $53,137
Monthly mortgage payment: $698
Maine: $71,082
Monthly mortgage payment: $1,255
Maryland: $76,117
Monthly mortgage payment: $1,526
Massachusetts: $96,064
Monthly mortgage payment: $2,157
Michigan: $58,990
Monthly mortgage payment: $881
Minnesota: $69,911
Monthly mortgage payment: $1,248
Mississippi: $47,216
Monthly mortgage payment: $531
Missouri: $55,365
Monthly mortgage payment: $782
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Montana: $70,608
Monthly mortgage payment: $1,389
Nebraska: $59,626
Monthly mortgage payment: $927
Nevada: $73,665
Monthly mortgage payment: $1,376
New Hampshire: $83,833
Monthly mortgage payment: $1,790
New Jersey: $89,474
Monthly mortgage payment: $2,060
New Mexico: $58,878
Monthly mortgage payment: $924
New York: $74,920
Monthly mortgage payment: $1,388
North Carolina: $61,953
Monthly mortgage payment: $962
North Dakota: $64,193
Monthly mortgage payment: $1,007
Ohio: $56,308
Monthly mortgage payment: $818
Oklahoma: $50,785
Monthly mortgage payment: $594
Oregon: $85,406
Monthly mortgage payment: $1,770
Pennsylvania: $65,425
Monthly mortgage payment: $1,030
Rhode Island: $82,230
Monthly mortgage payment: $1,626
South Carolina: $58,897
Monthly mortgage payment: $841
South Dakota: $60,890
Monthly mortgage payment: $1,016
Tennessee: $55,651
Monthly mortgage payment: $858
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Texas: $63,333
Monthly mortgage payment: $1,115
Utah: $78,221
Monthly mortgage payment: $1,699
Vermont: $77,216
Monthly mortgage payment: $1,428
Virginia: $68,399
Monthly mortgage payment: $1,302
Washington: $91,730
Monthly mortgage payment: $2,029
West Virginia: $46,351
Monthly mortgage payment: $437
Wisconsin: $64,120
Monthly mortgage payment: $1,042
Wyoming: $61,504
Monthly mortgage payment: $1,014
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Methodology: For this piece GOBankingRates first surveyed monthly living expenses in all 50 states. The cost-of-living comparison included the following factors: (1) yearly mortgage by assuming 20% down payment, 30-year fixed loan, current interest rate as sourced from St. Louis Federal Reserve (2.87%) for every state and multiplying that by 12 (1 year), sourced from Zillow's home value index and determined using Zillow's Mortgage Calculator; (2) annual necessities cost (grocery, utilities, healthcare and transportation) by taking the 2020 midyear Bureau of Labor Statistics consumer expenditure survey and factored out by the Missouri Economic Research and Information Center's cost-of-living index for Quarter 2 of 2021. Necessity costs were totaled the annual dollar cost of necessities in each state. This dollar amount for necessities was then doubled to find the (3) actual annual income needed to live comfortably in the state, assuming a person is following the 50-30-20 budgeting guideline, which requires an income double the cost of necessities. The amount of money specified for savings is equal to 20 percent of the total income needed, and the amount specified for discretionary spending is equal to 30% of the total income needed. All data was collected and is up to date as of Sept. 1, 2021.
This article originally appeared on GOBankingRates.com: This Is the Salary You Need To Afford the Average Home in Your State