real estate

How Much You Need to Earn to Afford to Buy a Home in 15 Major US Cities

The national qualifying income needed to buy a home is $55,575 with 10% down,

For Sale sign on the front yard of a home.
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When you’re in the market for a home, saving up for a hefty down payment typically won’t be enough to secure a mortgage. Lenders also expect borrowers to have a decent credit score — 90% of home buyers had a score of at least 650 in the first quarter of 2019 — and an income high enough that they are confident you’ll be able to make your mortgage payments each month.

The national qualifying income needed to buy a home is $55,575 with 10% down, and $49,400 with a 20% down payment, according to data from the National Association of Realtors’ Metropolitan Median Area Prices and Affordability index from the fourth quarter of 2019.

The data assumes a 3.67% mortgage rate for a 30-year fixed mortgage, and a monthly principal and interest payment limited to 25% of a resident’s income.

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Depending on where you live, though, the salary you need to qualify for a mortgage varies widely. These are the incomes you need to afford a home in 15 major U.S. metropolitan areas, ranked from lowest median home price to highest.

U.S. average

  • Salary required with a 10% down payment: $55,575
  • Salary required with a 20% down payment: $49,400
  • Median home price: $233,800

Tulsa, Oklahoma

  • Salary required with a 10% down payment: $35,237
  • Salary required with a 20% down payment: $31,322
  • Median home price: $174,300

Detroit, Michigan

  • Salary required with a 10% down payment: $39,361
  • Salary required with a 20% down payment: $34,988
  • Median home price: $194,700

New Orleans, Louisiana

  • Salary required with a 10% down payment: $45,184
  • Salary required with a 20% down payment: $40,163
  • Median home price: $223,500

Atlanta, Georgia

  • Salary required with a 10% down payment: $46,902
  • Salary required with a 20% down payment: $41,691
  • Median home price: $232,000

Philadelphia, Pennsylvania

  • Salary required with a 10% down payment: $48,883
  • Salary required with a 20% down payment: $43,452
  • Median home price: $241,800

Chicago, Illinois

  • Salary required with a 10% down payment: $51,491
  • Salary required with a 20% down payment: $45,770
  • Median home price: $254,700

Dallas, Texas

  • Salary required with a 10% down payment: $54,301
  • Salary required with a 20% down payment: $48,268
  • Median home price: $268,600

Nashville, Tennessee

  • Salary required with a 10% down payment: $56,566
  • Salary required with a 20% down payment: $50,281
  • Median home price: $279,800

Phoenix, Arizona

  • Salary required with a 10% down payment: $83,069
  • Salary required with a 20% down payment: $73,839
  • Median home price: $295,400

Portland, Oregon

  • Salary required with a 10% down payment: $59,719
  • Salary required with a 20% down payment: $53,084
  • Median home price: $410,900

New York, New York

  • Salary required with a 10% down payment: $86,526
  • Salary required with a 20% down payment: $76,912
  • Median home price: $428,000

Denver, Colorado

  • Salary required with a 10% down payment: $92,591
  • Salary required with a 20% down payment: $82,303
  • Median home price: $458,000

Boston, Massachusetts

  • Salary required with a 10% down payment: $97,605
  • Salary required with a 20% down payment: $86,760
  • Median home price: $482,800

San Francisco, California

  • Salary required with a 10% down payment: $200,143
  • Salary required with a 20% down payment: $177,905
  • Median home price: $990,000

San Jose, California

  • Salary required with a 10% down payment: $251,897
  • Salary required with a 20% down payment: $223,900
  • Median home price: $1,246,000

This story first appeared on CNBC.com

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