Housing Cost Ratio for Median Income Homeowners

Housing cost ratio shows the relationship of housing costs to income. A housing cost ratio of 30% or less is considered affordable by the federal government. This chart shows the ratio for median income homeowners and median-price homes.

We calculate median monthly income using the Census Bureau's 2023 American Community Survey, adjusted for wage inflation using the Bureau of Labor Statistics monthly wage report. Median home price is from the Zillow Home Value Index. Monthly housing cost includes mortgage principal, interest, taxes, and insurance, assuming a down payment of 20%.
Chart: Lars Peterson / Investopedia