Mortgage rates are rising again, with the 30-year fixed-rate term settling at just under 7% in the first full week of 2025. Nationally, that means the income required to afford a typical starter home would increase.
The price of a starter home in the US increased to $292,950 last year, which increased from $190,559 in 2019. Monthly payments on the typical starter home also rose by more than 100% within the past five years. This, in turn, means hopeful buyers would need a higher minimum household income to afford the typical home.
For perspective, a home is considered affordable if it does not require more than 30% of the household income.
To determine how much an individual needs to earn to afford a home in the US, Realtor.com analyzed the income required to afford a home priced at $292,950 with a mortgage rate of 7% and a down payment of 10%.
Here's a rundown of the income needed to afford a starter home in each US state.
Alabama
Starter Home Price: $225,520
Minimum Income Required: $54,014
Alaska
Starter Home Price: $293,100
Minimum Income Required: $70,200
Arizona
Starter Home Price: $395,520
Minimum Income Required: $94,731
Arkansas
Starter Home Price: $183,850
Minimum Income Required: $44,034
California
Starter Home Price: $497,780
Minimum Income Required: $119,223
Colorado
Starter Home Price: $477,030
Minimum Income Required: $114,253
Connecticut
Starter Home Price: $390,090
Minimum Income Required: $93,430
Delaware
Starter Home Price: $405,400
Minimum Income Required: $97,097
District of Columbia
Starter Home Price: $583,750
Minimum Income Required: $139,813
Florida
Starter Home Price: $360,540
Minimum Income Required: $86,353
Georgia
Starter Home Price: $299,350
Minimum Income Required: $71,697
Hawaii
Starter Home Price: $698,090
Minimum Income Required: $167,199
Idaho
Starter Home Price: $426,130
Minimum Income Required: $102,062
Illinois
Starter Home Price: $160,200
Minimum Income Required: $38,369
Indiana
Starter Home Price: $190,370
Minimum Income Required: $45,595
Iowa
Starter Home Price: $174,310
Minimum Income Required: $41,749
Read more: US Housing Affordability Unlikely To Improve Until Prices Fall 40%, Wages Increase 70%: Expert
Kansas
Starter Home Price: $170,890
Minimum Income Required: $40,930
Kentucky
Starter Home Price: $217,030
Minimum Income Required: $51,981
Louisiana
Starter Home Price: $195,200
Minimum Income Required: $46,752
Maine
Starter Home Price: $266,120
Minimum Income Required: $63,738
Maryland
Starter Home Price: $368,780
Minimum Income Required: $88,326
Massachusetts
Starter Home Price: $562,560
Minimum Income Required: $134,738
Michigan
Starter Home Price: $150,790
Minimum Income Required: $36,116
Minnesota
Starter Home Price: $293,910
Minimum Income Required: $70,394
Mississippi
Starter Home Price: $184,470
Minimum Income Required: $44,182
Missouri
Starter Home Price: $188,480
Minimum Income Required: $45,143
Montana
Starter Home Price: $401,460
Minimum Income Required: $96,153
Nebraska
Starter Home Price: $233,700
Minimum Income Required: $55,973
Nevada
Starter Home Price: $434,630
Minimum Income Required: $104,098
New Hampshire
Starter Home Price: $434,160
Minimum Income Required: $103,985
New Jersey
Starter Home Price: $423,540
Minimum Income Required: $101,442
New Mexico
Starter Home Price: $294,200
Minimum Income Required: $70,464
New York
Starter Home Price: $335,230
Minimum Income Required: $80,291
North Carolina
Starter Home Price: $314,880
Minimum Income Required: $75,417
North Dakota
Starter Home Price: $231,480
Minimum Income Required: $55,442
Ohio
Starter Home Price: $164,570
Minimum Income Required: $39,416
Oklahoma
Starter Home Price: $198,560
Minimum Income Required: $47,557
Oregon
Starter Home Price: $442,060
Minimum Income Required: $105,877
Pennsylvania
Starter Home Price: $186,050
Minimum Income Required: $44,561
Rhode Island
Starter Home Price: $407,720
Minimum Income Required: $97,653
South Carolina
Starter Home Price: $287,840
Minimum Income Required: $68,940
South Dakota
Starter Home Price: $287,500
Minimum Income Required: $68,859
Tennessee
Starter Home Price: $310,960
Minimum Income Required: $74,478
Texas
Starter Home Price: $274,260
Minimum Income Required: $65,688
Utah
Starter Home Price: $518,570
Minimum Income Required: $124,202
Vermont
Starter Home Price: $338,040
Minimum Income Required: $80,964
Virginia
Starter Home Price: $305,260
Minimum Income Required: $73,112
Washington
Starter Home Price: $482,900
Minimum Income Required: $115,659
West Virginia
Starter Home Price: $132,160
Minimum Income Required: $31,653
Wisconsin
Starter Home Price: $256,670
Minimum Income Required: $61,475
Wyoming
Starter Home Price: $319,640
Minimum Income Required: $76,557
