CALCMONEY // HOME AFFORDABILITY // AL
Find out how much home you can afford in Alabama using local median home prices, current mortgage rates, and AL-specific property tax data.
Open Full Calculator$241,009
$1,427/mo
$265,810
$61,138/yr
| Median Home Price | $241,009 |
| Down Payment (20%) | $48,202 |
| Loan Amount | $192,807 |
| Monthly PI Payment | $1,252 |
| Monthly Property Tax | $74 |
| Monthly Insurance Est. | $100 |
| Total Monthly PITI | $1,427 |
| Required Gross Income (28% rule) | $61,138/yr |
| Max Affordable Price (28% rule) | $265,810 |
$8,435
$1,849/mo
Alabama Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $241,009 | State median |
| Down Payment (20%) | $48,202 | Conventional |
| Monthly PITI (median home) | $1,427 | 6.76% rate |
| Required Income (28% rule) | $61,138 | Annual gross |
| Max Affordable Home | $265,810 | Based on median income |
| FHA Down Payment (3.5%) | $8,435 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Alabama is $241,009, with a current 30-year fixed mortgage rate of 6.76%. A buyer putting 20% down on the median home would carry a loan of $192,807, resulting in a monthly principal and interest payment of $1,252. Once property taxes and insurance are added, total monthly housing costs reach $1,427.
Property taxes in Alabama average 0.37%, well below the national average of 1.1%. On the median Alabama home, property taxes add $74/month to total housing costs.
Alabama levies a state income tax of 2%–5%, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Alabama state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Alabama's median income of $66,659/year can afford up to $1,555/month in total housing costs (principal, interest, taxes, and insurance). Based on Alabama's current mortgage rate of 6.76% and property tax rate of 0.37%, that translates to a maximum affordable home price of approximately $265,810 with 20% down on a 30-year loan.
To comfortably afford the median Alabama home priced at $241,009, you need an annual gross income of approximately $61,138. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,252, property taxes of $74, and insurance of $100) come to $1,427/month, which should not exceed 28% of your gross monthly income.
Alabama's average property tax rate is 0.37%, which is well below the national average of 1.1%. On the median Alabama home of $241,009, that means annual property taxes of $892, or $74/month. Because lenders include property taxes in your debt-to-income calculation, Alabama's property taxes have a relatively modest impact on overall affordability.
The minimum down payment depends on your loan type. For an FHA loan, you can put down as little as 3.5% — on the median Alabama home of $241,009, that is $8,435. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($48,202 on the median Alabama home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Alabama-specific minimum down payment requirements beyond federal guidelines.