How Much Income Is Needed To Afford House Payments

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February 22, 2017

In eight of the nation’s 15 largest cities, buyers could afford monthly house payments on salaries less than $30,000 a year.

Based on median home values and property taxes, and setting parameters such as 20 percent down payments, 30-year fixed mortgages, and slight annual increases in home value and inflation, SmartAsset determined how much buyers would have to earn to pay for a house.

While Indianapolis, where people only need to make $20,924 a year to afford a home, San Antonio ($23,529), Philadelphia ($24,465), and Phoenix ($26,803) are among the cheaper markets, a few cities are strictly for high earners. People in New York City and San Jose need to make nearly six figures to afford a typical home, while San Franciscans have to earn $128,598 to make their home payments.

Although San Francisco is home to some of the most well-paid individuals in the country, the median home is still largely out of reach for the typical household. … The mortgage payments alone hit the $3,000 per month mark. To afford this, you’ll need to earn a salary around $128,600, and the average household in San Francisco makes around $81,000.

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