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Michigan home affordability calculator

The median Michigan household earns about $69,000 a year, and the median home costs about $240,000 — 3.5 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 $202,184 , roughly $37,816 short of the median. The calculator is pre-filled with those figures — replace them with yours.

$202,184 max home price

Max loan amount
$178,184
Housing payment budget
$1,624
P&I budget
$1,224
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 Michigan, property tax at about 1.38% of value plus roughly $1,400 a year of homeowners insurance come to about $393 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 $1,624 a month, leaving $1,224 for principal and interest.

Homes in Michigan spend about 30 days on the market on average. Michigan caps taxable-value growth on a home until it is sold, so long-time owners often pay far less than a new buyer of the same house. The state offers only a limited trade-in credit on vehicle tax.

Frequently asked questions

How much house can I afford in Michigan on the median income?
On Michigan's median household income of about $69,000, with no other debts, 10% down, and a 7.32% 30-year rate, the 28% housing guideline supports a home of roughly $202,184. That's about $37,816 below the $240,000 median home price.
What income do I need to buy a median-priced home in Michigan?
Michigan's median home costs about $240,000 — 3.5 times the median household income. Lenders' 28% front-end rule means the full payment, including about $393 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 Michigan?
On the median home, Michigan's 1.38% effective property tax rate and about $1,400 a year in homeowners insurance come to roughly $393 a month — money that comes out of the housing budget before any goes to principal and interest.
Does Michigan'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: Michigan's income tax tops out at 4.25%, 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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