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Minnesota home affordability calculator

The median Minnesota household earns about $87,000 a year, and the median home costs about $340,000 — 3.9 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 $255,129 , roughly $84,871 short of the median. The calculator is pre-filled with those figures — replace them with yours.

$255,129 max home price

Max loan amount
$221,129
Housing payment budget
$2,044
P&I budget
$1,519
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 Minnesota, property tax at about 1.11% of value plus roughly $2,400 a year of homeowners insurance come to about $515 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 $2,044 a month, leaving $1,519 for principal and interest.

Homes in Minnesota spend about 35 days on the market on average. Minnesota's property tax rate is near average and partly offset by a homestead credit refund for eligible owners. Hail exposure keeps insurance premiums above the national norm.

Frequently asked questions

How much house can I afford in Minnesota on the median income?
On Minnesota's median household income of about $87,000, with no other debts, 10% down, and a 7.32% 30-year rate, the 28% housing guideline supports a home of roughly $255,129. That's about $84,871 below the $340,000 median home price.
What income do I need to buy a median-priced home in Minnesota?
Minnesota's median home costs about $340,000 — 3.9 times the median household income. Lenders' 28% front-end rule means the full payment, including about $515 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 Minnesota?
On the median home, Minnesota's 1.11% effective property tax rate and about $2,400 a year in homeowners insurance come to roughly $515 a month — money that comes out of the housing budget before any goes to principal and interest.
Does Minnesota'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: Minnesota's income tax tops out at 9.85%, 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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