The common lending guideline, or the 28% mortgage rule, stipulates that homeowners should spend 28% or less of their monthly gross income on major housing expenses — including mortgage principal, interest, taxes, and insurance. Nationwide, however, such expenses on median-priced homes accounted for 32.3% of the average national wage in the first quarter, according to real estate data company ATTOM.
That is not to say that some housing markets are considerably more affordable than the national average and are well within the rule. In fact, nationwide, these are the most affordable housing markets. In each state, too, there are more and less affordable housing markets.
To find the most affordable housing markets in each state, 24/7 Wall St. reviewed data from real estate data company ATTOM’s 2024 U.S. Home Affordability Report. ATTOM analyzed median home prices and average wage data from the Bureau of Labor Statistics in 590 U.S. counties to find the percentage of average wages needed to pay for major expenses on a median-priced home with a 30-year fixed-rate mortgage and a 20% downpayment. 24/7 Wall St. listed here the county in each state where the lowest percentage of wages is required to afford a median-priced home. States are ordered alphabetically.
Just because a housing market is the most affordable in its state does not mean it is actually affordable. In 21 states, the most affordable housing market does not adhere to the 28% mortgage rule, including 16 states where the most affordable housing market is less affordable than the national average. In eight of those, homeowners would have to spend over 40% of their income on major housing expenses.
For example, in Hawaii, the most affordable housing market is Hawaii County, which encompasses the Big Island. The median sales price of housing in the county was $515,000 in the first quarter (only for single-family homes and condos). The median local annualized wage, meanwhile, is just $54,561, meaning homeowners housing expenses amount to nearly 61% of their annualized wage. To adhere to the 28% rule, the required annual wage would be about $118,000. (Also see: This City Has the Most Expensive Houses in America.)
Of course, there are states where the most affordable housing market is considerably more affordable than is required. Of the 29 states where the most affordable housing market adheres to the 28% mortgage rule, in 19, homeowners would need to spend less than 20% of their wages on housing expenses. For example, in Macon County, Illinois, housing expenses amount to just 11.9% of wages.
Why This Matters
Alabama: Jefferson
- County seat: Birmingham
- Pct. of annualized wage needed to buy a median priced home: 12.50%
- Median home sales price, Q1 2024: $129,000 (#14 lowest of 590 counties)
- Annualized weekly wages: $68,510 vs.
- Annual income needed to buy (20% down, 28% expenses): $30,664
- County population: 672,265
Alaska: Anchorage
- County seat: Anchorage
- Pct. of annualized wage needed to buy a median priced home: 39.40%
- Median home sales price, Q1 2024: $375,000 (#401 lowest of 590 counties)
- Annualized weekly wages: $70,265 vs.
- Annual income needed to buy (20% down, 28% expenses): $98,874
- County population: 290,674
Arizona: Cochise
- County seat: Bisbee
- Pct. of annualized wage needed to buy a median priced home: 28.90%
- Median home sales price, Q1 2024: $249,990 (#201 lowest of 590 counties)
- Annualized weekly wages: $56,680 vs.
- Annual income needed to buy (20% down, 28% expenses): $58,453
- County population: 125,504
Arkansas: Sebastian
- County seat: Fort Smith
- Pct. of annualized wage needed to buy a median priced home: 20.20%
- Median home sales price, Q1 2024: $162,000 (#55 lowest of 590 counties)
- Annualized weekly wages: $53,014 vs.
- Annual income needed to buy (20% down, 28% expenses): $38,339
- County population: 128,184
California: Kings
- County seat: Hanford
- Pct. of annualized wage needed to buy a median priced home: 39.90%
- Median home sales price, Q1 2024: $310,000 (#305 lowest of 590 counties)
- Annualized weekly wages: $53,014 vs.
- Annual income needed to buy (20% down, 28% expenses): $75,480
- County population: 152,515
Colorado: Pueblo
- County seat: Pueblo
- Pct. of annualized wage needed to buy a median priced home: 30.30%
- Median home sales price, Q1 2024: $253,862 (#212 lowest of 590 counties)
- Annualized weekly wages: $54,132 vs.
- Annual income needed to buy (20% down, 28% expenses): $58,667
- County population: 168,135
Connecticut: Hartford
- County seat: Hartford
- Pct. of annualized wage needed to buy a median priced home: 29.20%
- Median home sales price, Q1 2024: $299,000 (#290 lowest of 590 counties)
- Annualized weekly wages: $80,275 vs.
- Annual income needed to buy (20% down, 28% expenses): $83,646
- County population: 897,512
Delaware: New Castle
- County seat: Wilmington
- Pct. of annualized wage needed to buy a median priced home: 26.70%
- Median home sales price, Q1 2024: $303,747 (#301 lowest of 590 counties)
- Annualized weekly wages: $76,180 vs.
- Annual income needed to buy (20% down, 28% expenses): $72,667
- County population: 570,567
Florida: Duval
- County seat: Jacksonville
- Pct. of annualized wage needed to buy a median priced home: 26.90%
- Median home sales price, Q1 2024: $260,813 (#219 lowest of 590 counties)
- Annualized weekly wages: $67,886 vs.
- Annual income needed to buy (20% down, 28% expenses): $65,322
- County population: 995,708
Georgia: Richmond
- County seat: Augusta
- Pct. of annualized wage needed to buy a median priced home: 15.50%
- Median home sales price, Q1 2024: $128,304 (#12 lowest of 590 counties)
- Annualized weekly wages: $56,381 vs.
- Annual income needed to buy (20% down, 28% expenses): $31,192
- County population: 206,153
Hawaii: Hawaii
- County seat: Hilo
- Pct. of annualized wage needed to buy a median priced home: 60.80%
- Median home sales price, Q1 2024: $515,000 (#520 lowest of 590 counties)
- Annualized weekly wages: $54,561 vs.
- Annual income needed to buy (20% down, 28% expenses): $118,454
- County population: 202,163
Idaho: Ada
- County seat: Boise
- Pct. of annualized wage needed to buy a median priced home: 47.70%
- Median home sales price, Q1 2024: $473,347 (#488 lowest of 590 counties)
- Annualized weekly wages: $64,974 vs.
- Annual income needed to buy (20% down, 28% expenses): $110,793
- County population: 497,494
Illinois: Macon
- County seat: Decatur
- Pct. of annualized wage needed to buy a median priced home: 11.90%
- Median home sales price, Q1 2024: $99,000 (#4 lowest of 590 counties)
- Annualized weekly wages: $67,327 vs.
- Annual income needed to buy (20% down, 28% expenses): $28,685
- County population: 103,542
Indiana: Delaware
- County seat: Muncie
- Pct. of annualized wage needed to buy a median priced home: 17.70%
- Median home sales price, Q1 2024: $128,847 (#13 lowest of 590 counties)
- Annualized weekly wages: $49,660 vs.
- Annual income needed to buy (20% down, 28% expenses): $31,446
- County population: 112,156
Iowa: Woodbury
- County seat: Sioux City
- Pct. of annualized wage needed to buy a median priced home: 25.40%
- Median home sales price, Q1 2024: $180,000 (#77 lowest of 590 counties)
- Annualized weekly wages: $51,558 vs.
- Annual income needed to buy (20% down, 28% expenses): $46,804
- County population: 105,526
Kansas: Sedgwick
- County seat: Wichita
- Pct. of annualized wage needed to buy a median priced home: 21.30%
- Median home sales price, Q1 2024: $175,331 (#72 lowest of 590 counties)
- Annualized weekly wages: $58,370 vs.
- Annual income needed to buy (20% down, 28% expenses): $44,367
- County population: 522,700
Kentucky (20% down, 28% expenses): Kenton
- County seat: Independence
- Pct. of annualized wage needed to buy a median priced home: 20.00%
- Median home sales price, Q1 2024: $207,125 (#121 lowest of 590 counties)
- Annualized weekly wages: $70,616 vs.
- Annual income needed to buy (20% down, 28% expenses): $50,446
- County population: 169,066
Louisiana: Caddo
- County seat: Shreveport
- Pct. of annualized wage needed to buy a median priced home: 16.80%
- Median home sales price, Q1 2024: $132,500 (#15 lowest of 590 counties)
- Annualized weekly wages: $55,900 vs.
- Annual income needed to buy (20% down, 28% expenses): $33,610
- County population: 236,259
Maine: Penobscot
- County seat: Bangor
- Pct. of annualized wage needed to buy a median priced home: 32.70%
- Median home sales price, Q1 2024: $245,643 (#193 lowest of 590 counties)
- Annualized weekly wages: $53,144 vs.
- Annual income needed to buy (20% down, 28% expenses): $62,049
- County population: 152,640
Maryland: Baltimore City
- County seat: Baltimore (indepedent city)
- Pct. of annualized wage needed to buy a median priced home: 18.30%
- Median home sales price, Q1 2024: $195,000 (#95 lowest of 590 counties)
- Annualized weekly wages: $79,989 vs.
- Annual income needed to buy (20% down, 28% expenses): $52,167
- County population: 584,548
Massachusetts: Hampden
- County seat: Springfield
- Pct. of annualized wage needed to buy a median priced home: 35.10%
- Median home sales price, Q1 2024: $281,900 (#260 lowest of 590 counties)
- Annualized weekly wages: $59,488 vs.
- Annual income needed to buy (20% down, 28% expenses): $74,530
- County population: 464,575
Michigan: Wayne
- County seat: Detroit
- Pct. of annualized wage needed to buy a median priced home: 13.30%
- Median home sales price, Q1 2024: $135,000 (#21 lowest of 590 counties)
- Annualized weekly wages: $73,203 vs.
- Annual income needed to buy (20% down, 28% expenses): $34,825
- County population: 1,781,641
Minnesota: Saint Louis
- County seat: Duluth
- Pct. of annualized wage needed to buy a median priced home: 21.50%
- Median home sales price, Q1 2024: $179,000 (#75 lowest of 590 counties)
- Annualized weekly wages: $57,577 vs.
- Annual income needed to buy (20% down, 28% expenses): $44,219
- County population: 200,122
Mississippi: Jackson
- County seat: Pascagoula
- Pct. of annualized wage needed to buy a median priced home: 23.00%
- Median home sales price, Q1 2024: $199,900 (#103 lowest of 590 counties)
- Annualized weekly wages: $57,772 vs.
- Annual income needed to buy (20% down, 28% expenses): $47,386
- County population: 143,721
Missouri: Saint Louis City
- County seat: St. Louis (indepedent city)
- Pct. of annualized wage needed to buy a median priced home: 15.00%
- Median home sales price, Q1 2024: $162,000 (#55 lowest of 590 counties)
- Annualized weekly wages: $75,400 vs.
- Annual income needed to buy (20% down, 28% expenses): $40,519
- County population: 298,018
Montana: Yellowstone
- County seat: Billings
- Pct. of annualized wage needed to buy a median priced home: 41.50%
- Median home sales price, Q1 2024: $358,497 (#382 lowest of 590 counties)
- Annualized weekly wages: $59,124 vs.
- Annual income needed to buy (20% down, 28% expenses): $87,727
- County population: 165,524
Nebraska: Douglas
- County seat: Omaha
- Pct. of annualized wage needed to buy a median priced home: 30.50%
- Median home sales price, Q1 2024: $265,000 (#225 lowest of 590 counties)
- Annualized weekly wages: $66,274 vs.
- Annual income needed to buy (20% down, 28% expenses): $72,144
- County population: 582,638
Nevada: Clark
- County seat: Las Vegas
- Pct. of annualized wage needed to buy a median priced home: 45.20%
- Median home sales price, Q1 2024: $428,000 (#462 lowest of 590 counties)
- Annualized weekly wages: $61,503 vs.
- Annual income needed to buy (20% down, 28% expenses): $99,270
- County population: 2,265,926
New Hampshire: Hillsborough
- County seat: Nashua
- Pct. of annualized wage needed to buy a median priced home: 45.80%
- Median home sales price, Q1 2024: $467,336 (#485 lowest of 590 counties)
- Annualized weekly wages: $76,427 vs.
- Annual income needed to buy (20% down, 28% expenses): $125,048
- County population: 422,733
New Jersey (20% down, 28% expenses): Cumberland
- County seat: Bridgeton
- Pct. of annualized wage needed to buy a median priced home: 27.80%
- Median home sales price, Q1 2024: $193,300 (#93 lowest of 590 counties)
- Annualized weekly wages: $55,354 vs.
- Annual income needed to buy (20% down, 28% expenses): $55,053
- County population: 153,588
New Mexico: San Juan
- County seat: Aztec
- Pct. of annualized wage needed to buy a median priced home: 27.10%
- Median home sales price, Q1 2024: $223,521 (#157 lowest of 590 counties)
- Annualized weekly wages: $53,638 vs.
- Annual income needed to buy (20% down, 28% expenses): $51,881
- County population: 121,798
New York: Oswego
- County seat: Oswego
- Pct. of annualized wage needed to buy a median priced home: 14.70%
- Median home sales price, Q1 2024: $124,250 (#9 lowest of 590 counties)
- Annualized weekly wages: $59,579 vs.
- Annual income needed to buy (20% down, 28% expenses): $31,301
- County population: 118,037
North Carolina: Robeson
- County seat: Lumberton
- Pct. of annualized wage needed to buy a median priced home: 14.50%
- Median home sales price, Q1 2024: $96,020 (#3 lowest of 590 counties)
- Annualized weekly wages: $43,979 vs.
- Annual income needed to buy (20% down, 28% expenses): $22,747
- County population: 117,573
North Dakota: Cass
- County seat: Fargo
- Pct. of annualized wage needed to buy a median priced home: 31.20%
- Median home sales price, Q1 2024: $275,000 (#240 lowest of 590 counties)
- Annualized weekly wages: $63,869 vs.
- Annual income needed to buy (20% down, 28% expenses): $71,124
- County population: 186,328
Ohio: Lucas
- County seat: Toledo
- Pct. of annualized wage needed to buy a median priced home: 16.90%
- Median home sales price, Q1 2024: $133,000 (#16 lowest of 590 counties)
- Annualized weekly wages: $59,384 vs.
- Annual income needed to buy (20% down, 28% expenses): $35,753
- County population: 430,014
Oklahoma: Comanche
- County seat: Lawton
- Pct. of annualized wage needed to buy a median priced home: 18.00%
- Median home sales price, Q1 2024: $124,000 (#8 lowest of 590 counties)
- Annualized weekly wages: $47,970 vs.
- Annual income needed to buy (20% down, 28% expenses): $30,767
- County population: 121,777
Oregon: Douglas
- County seat: Roseburg
- Pct. of annualized wage needed to buy a median priced home: 38.60%
- Median home sales price, Q1 2024: $295,000 (#282 lowest of 590 counties)
- Annualized weekly wages: $50,830 vs.
- Annual income needed to buy (20% down, 28% expenses): $70,163
- County population: 111,322
Pennsylvania: Schuylkill
- County seat: Pottsville
- Pct. of annualized wage needed to buy a median priced home: 12.10%
- Median home sales price, Q1 2024: $86,000 (#2 lowest of 590 counties)
- Annualized weekly wages: $52,052 vs.
- Annual income needed to buy (20% down, 28% expenses): $22,448
- County population: 143,201
Rhode Island: Providence
- County seat: Providence
- Pct. of annualized wage needed to buy a median priced home: 41.60%
- Median home sales price, Q1 2024: $380,000 (#408 lowest of 590 counties)
- Annualized weekly wages: $66,417 vs.
- Annual income needed to buy (20% down, 28% expenses): $98,641
- County population: 657,984
South Carolina: Sumter
- County seat: Sumter
- Pct. of annualized wage needed to buy a median priced home: 18.40%
- Median home sales price, Q1 2024: $141,500 (#28 lowest of 590 counties)
- Annualized weekly wages: $50,063 vs.
- Annual income needed to buy (20% down, 28% expenses): $32,859
- County population: 105,199
Tennessee: Shelby
- County seat: Memphis
- Pct. of annualized wage needed to buy a median priced home: 17.30%
- Median home sales price, Q1 2024: $166,666 (#60 lowest of 590 counties)
- Annualized weekly wages: $68,614 vs.
- Annual income needed to buy (20% down, 28% expenses): $42,314
- County population: 926,440
Texas: Jefferson
- County seat: Beaumont
- Pct. of annualized wage needed to buy a median priced home: 18.50%
- Median home sales price, Q1 2024: $161,250 (#54 lowest of 590 counties)
- Annualized weekly wages: $65,611 vs.
- Annual income needed to buy (20% down, 28% expenses): $43,264
- County population: 254,942
Utah: Salt Lake
- County seat: Salt Lake City
- Pct. of annualized wage needed to buy a median priced home: 45.00%
- Median home sales price, Q1 2024: $501,470 (#514 lowest of 590 counties)
- Annualized weekly wages: $72,813 vs.
- Annual income needed to buy (20% down, 28% expenses): $116,898
- County population: 1,180,643
Vermont: Chittenden
- County seat: Burlington
- Pct. of annualized wage needed to buy a median priced home: 45.60%
- Median home sales price, Q1 2024: $434,900 (#466 lowest of 590 counties)
- Annualized weekly wages: $69,615 vs.
- Annual income needed to buy (20% down, 28% expenses): $113,383
- County population: 168,309
Virginia: Richmond City
- County seat: Richmond (independent city)
- Pct. of annualized wage needed to buy a median priced home: 23.90%
- Median home sales price, Q1 2024: $280,000 (#252 lowest of 590 counties)
- Annualized weekly wages: $79,040 vs.
- Annual income needed to buy (20% down, 28% expenses): $67,415
- County population: 227,171
Washington: Cowlitz
- County seat: Kelso
- Pct. of annualized wage needed to buy a median priced home: 38.60%
- Median home sales price, Q1 2024: $360,000 (#385 lowest of 590 counties)
- Annualized weekly wages: $63,271 vs.
- Annual income needed to buy (20% down, 28% expenses): $87,135
- County population: 110,621
West Virginia: Kanawha
- County seat: Charleston
- Pct. of annualized wage needed to buy a median priced home: 16.20%
- Median home sales price, Q1 2024: $140,500 (#27 lowest of 590 counties)
- Annualized weekly wages: $57,915 vs.
- Annual income needed to buy (20% down, 28% expenses): $33,575
- County population: 179,895
Wisconsin: Fond Du Lac
- County seat: Fond du Lac
- Pct. of annualized wage needed to buy a median priced home: 25.10%
- Median home sales price, Q1 2024: $200,000 (#104 lowest of 590 counties)
- Annualized weekly wages: $56,576 vs.
- Annual income needed to buy (20% down, 28% expenses): $50,773
- County population: 104,027
Wyoming: Laramie
- County seat: Cheyenne
- Pct. of annualized wage needed to buy a median priced home: 37.70%
- Median home sales price, Q1 2024: $330,000 (#347 lowest of 590 counties)
- Annualized weekly wages: $57,811 vs.
- Annual income needed to buy (20% down, 28% expenses): $77,771
- County population: 100,316
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