Home Affordability in 2024: How to Find What You Can Actually Buy
The 28% Rule (And Why It's a Starting Point, Not a Rule)
Traditional advice says housing costs should not exceed 28% of your gross monthly income. With today's rates, a $75,000 salary qualifies for roughly a $250,000 home loan — far below median home prices in many major metros. This means buyers must either compromise on location, size, or wait for conditions to improve.
Where Affordability Still Exists
While coastal metros remain extremely tight, many Midwest and Southern ZIP codes offer strong value. Cities like Columbus OH, Indianapolis IN, Tulsa OK, and Birmingham AL still have substantial inventory below $300,000 with solid neighborhood scores.
Using ZipScore's Affordability Calculator
Our Affordability Calculator lets you input your income, down payment, and current interest rate to determine your realistic price range. You can then check any specific ZIP code to see how its median home price compares to your budget — instantly knowing if an area is within reach.
Don't Forget Total Cost of Ownership
- Property taxes (0.5% to 2.5% of home value annually)
- Homeowner's insurance ($1,500-$4,000/year)
- HOA fees where applicable
- Maintenance reserves (budget 1% of home value per year)
Market Timing vs. Life Timing
Market timing is nearly impossible. Buy when your life situation calls for it and you can afford it — not based on interest rate predictions. Focus on finding an affordable ZIP code with strong fundamentals, and let appreciation take care of itself over time.