Shopping for a home can be an exciting but overwhelming experience. Before you start your search, it’s important to determine how much you can afford to pay for your monthly mortgage payment based on your income. To help you understand the affordability of homes in each state, GOBankingRates has calculated the minimum salary needed to afford the average home in each state.
The rule of thumb recommended by financial experts is that your housing costs, primarily your mortgage payments, should not exceed 30% of your monthly income. With this guideline in mind, GOBankingRates analyzed home prices and mortgage rates in every state to estimate the minimum salary required to afford the average home.
Here is a breakdown of the minimum salary needed in each state:
– Alabama: $64,163
– Alaska: $106,279
– Arizona: $96,344
– Arkansas: $60,487
– California: $148,908
– Colorado: $111,199
– Connecticut: $103,999
– Delaware: $89,773
– Florida: $95,979
– Georgia: $80,105
– Hawaii: $176,010
– Idaho: $97,916
– Illinois: $79,065
– Indiana: $69,677
– Iowa: $70,093
– Kansas: $70,204
– Kentucky: $64,790
– Louisiana: $63,119
– Maine: $93,928
– Maryland: $97,091
– Massachusetts: $131,536
– Michigan: $70,928
– Minnesota: $87,301
– Mississippi: $59,413
– Missouri: $69,920
– Montana: $97,477
– Nebraska: $76,661
– Nevada: $98,623
– New Hampshire: $116,962
– New Jersey: $117,735
– New Mexico: $77,014
– New York: $101,804
– North Carolina: $82,358
– North Dakota: $76,476
– Ohio: $70,976
– Oklahoma: $63,890
– Oregon: $114,269
– Pennsylvania: $78,695
– Rhode Island: $106,613
– South Carolina: $75,950
– South Dakota: $79,649
– Tennessee: $75,947
– Texas: $83,946
– Utah: $107,797
– Vermont: $97,731
– Virginia: $90,084
– Washington: $123,625
– West Virginia: $60,980
– Wisconsin: $82,208
– Wyoming: $81,223
It’s important to note that these figures are based on the average home value in each state and the current mortgage rates. The cost of living and home prices may vary within each state, so it’s crucial to research the local housing market before making any decisions.
In conclusion, understanding your budget and the affordability of homes in your state is a crucial step in the home-buying process. By determining the minimum salary needed to afford the average home, you can make informed decisions and avoid financial strain.
