15 States Where HOMEOWNERSHIP is Possible on LESS Than $100K a Year in 2024

As the general cost of living rises and earnings fail to keep up with increasing housing prices, many would-be purchasers may become dissatisfied with their chances of becoming homeowners. However, there is some good news: if your annual salary is less than $100,000, you can still buy a home in 42 states.

How did we discover this? GOBankingRates calculated each state’s average 2024 home value and average monthly mortgage based on the premise that purchasers would use a 30-year fixed-rate mortgage with a 20% down payment and a 6.82% interest rate. From there, assuming housing costs could not exceed 30% of gross income, GOBankingRates calculated the minimal wage required to comfortably purchase a home in each state.

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This is the minimum wage you need to earn to buy a home in 2024, ranked by state from highest to lowest.

1. Hawaii

2024 average home value: $967,270
20% down payment: $193,454.00
Loan amount: $773,816.01
Monthly mortgage: $5,055.01
Annual mortgage: $60,660.18
Minimum salary needed to comfortably afford a home: $202,200.59

2. California

2024 average home value: $785,333
20% down payment: $157,066.65
Loan amount: $628,266.60
Monthly mortgage: $4,104.20
Annual mortgage: $49,250.42
Minimum salary needed to comfortably afford a home: $164,168.07

3. District of Columbia (DC)

2024 average home value: $718,017
20% down payment: $143,603.38
Loan amount: $574,413.51
Monthly mortgage: $3,752.40
Annual mortgage: $45,028.82
Minimum salary needed to comfortably afford a home: $150,096.08

4. Massachusetts

2024 average home value: $615,963
20% down payment: $123,192.52
Loan amount: $492,770.08
Monthly mortgage: $3,219.06
Annual mortgage: $38,628.72
Minimum salary needed to comfortably afford a home: $128,762.39

5. Mississippi

2024 average home value: $170,653
20% down payment: $34,130.66
Loan amount: $136,522.65
Monthly mortgage: $891.85
Annual mortgage: $10,702.14
Minimum salary needed to comfortably afford a home: $35,673.80

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6. West Virginia

2024 average home value: $155,080
20% down payment: $31,016.07
Loan amount: $124,064.28
Monthly mortgage: $810.46
Annual mortgage: $9,725.52
Minimum salary needed to comfortably afford a home: $32,418.39

7. Iowa

2024 average home value: $212,367
20% down payment: $42,473.40
Loan amount: $169,893.59
Monthly mortgage: $1,109.84
Annual mortgage: $13,318.12
Minimum salary needed to comfortably afford a home: $44,393.74

8. Oklahoma

2024 average home value: $200,153
20% down payment: $40,030.57
Loan amount: $160,122.28
Monthly mortgage: $1,046.01
Annual mortgage: $12,552.14
Minimum salary needed to comfortably afford a home: $41,840.46

9. Arkansas

2024 average home value: $198,364
20% down payment: $39,672.80
Loan amount: $158,691.21
Monthly mortgage: $1,036.66
Annual mortgage: $12,439.96
Minimum salary needed to comfortably afford a home: $41,466.52

10. Kentucky

2024 average home value: $196,412
20% down payment: $39,282.42
Loan amount: $157,129.67
Monthly mortgage: $1,026.46
Annual mortgage: $12,317.55
Minimum salary needed to comfortably afford a home: $41,058.48

11. Indiana

2024 average home value: $231,278
20% down payment: $46,255.59
Loan amount: $185,022.36
Monthly mortgage: $1,208.67
Annual mortgage: $14,504.08
Minimum salary needed to comfortably afford a home: $48,346.93

12. Michigan

2024 average home value: $230,125
20% down payment: $46,025.03
Loan amount: $184,100.13
Monthly mortgage: $1,202.65
Annual mortgage: $14,431.79
Minimum salary needed to comfortably afford a home: $48,105.95

13. Ohio

2024 average home value: $218,535
20% down payment: $43,707.07
Loan amount: $174,828.27
Monthly mortgage: $1,142.08
Annual mortgage: $13,704.95
Minimum salary needed to comfortably afford a home: $45,683.18

14. Alabama

2024 average home value: $218,004
20% down payment: $43,600.75
Loan amount: $174,402.99
Monthly mortgage: $1,139.30
Annual mortgage: $13,671.62
Minimum salary needed to comfortably afford a home: $45,572.06

15. Kansas

2024 average home value: $217,817
20% down payment: $43,563.35
Loan amount: $174,253.38
Monthly mortgage: $1,138.32
Annual mortgage: $13,659.89
Minimum salary needed to comfortably afford a home: $45,532.96

Final Words

Despite growing living costs and stagnating income, aspiring homebuyers making less than $100,000 per year may still purchase a home in 42 states. This affordability estimate is based on GOBankingRates’ analysis of 2024 property values, mortgage rates, and minimum income requirements.