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California home affordability calculator

The median California household earns about $96,000 a year, and the median home costs about $785,000 — 8.2 times income. With 10% down, no other debts, and the current 7.32% average 30-year rate (Freddie Mac, week of October 22, 2026), standard lending ratios support a home of about $317,743 , roughly $467,257 short of the median. The calculator is pre-filled with those figures — replace them with yours.

$317,743 max home price

Max loan amount
$238,743
Housing payment budget
$2,240
P&I budget
$1,640
Bound by
front-end ratio

Uses the 28% front-end / 36% back-end DTI guidelines. Lenders vary.

How it works

Lenders cap the full housing payment — principal, interest, property tax, insurance — near 28% of gross monthly income, and all debt payments near 36%. In California, property tax at about 0.75% of value plus roughly $1,400 a year of homeowners insurance come to about $607 a month on the median home, and that comes out of the 28% budget before anything goes to the loan. On the median income the housing budget is about $2,240 a month, leaving $1,640 for principal and interest.

Homes in California spend about 30 days on the market on average. California's Proposition 13 caps assessed-value growth, so the effective property tax rate looks modest, but the highest median home price in the country means the dollar payment is still among the nation's largest. The state does not credit a trade-in against vehicle sales tax.

Frequently asked questions

How much house can I afford in California on the median income?
On California's median household income of about $96,000, with no other debts, 10% down, and a 7.32% 30-year rate, the 28% housing guideline supports a home of roughly $317,743. That's about $467,257 below the $785,000 median home price.
What income do I need to buy a median-priced home in California?
California's median home costs about $785,000 — 8.2 times the median household income. Lenders' 28% front-end rule means the full payment, including about $607 a month in property tax and insurance, needs to fit inside 28% of gross monthly income. Try the calculator with your own income and down payment.
How much do property tax and insurance add in California?
On the median home, California's 0.75% effective property tax rate and about $1,400 a year in homeowners insurance come to roughly $607 a month — money that comes out of the housing budget before any goes to principal and interest.
Does California's income tax affect how much house I can afford?
Not in the lender's math, which uses gross income. It does affect what's comfortable: California's income tax tops out at 13.30%, so take-home pay is smaller than gross by more than federal tax alone.

Learn more: How much house can I afford?

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