CALCMONEY // HOME AFFORDABILITY // AZ // PHOENIX
How much house can you afford in Phoenix? Based on local median home prices, current AZ mortgage rates, and Phoenix property tax data.
$420,000
$2,633/mo
$112,838/yr
$217,001
Monthly housing costs of $2,633 represent 47.2% of Phoenix's median gross monthly income ($5,583/mo). At 47.2%, median-income buyers in Phoenix are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $420,000 |
| Down Payment (20%) | $84,000 |
| Loan Amount | $336,000 |
| Monthly PI Payment | $2,213 |
| Monthly Property Tax | $245 |
| Monthly Insurance Est. | $175 |
| Total Monthly PITI | $2,633 |
| Housing Cost % of Income | 47.2% |
| Required Income (28% rule) | $112,838/yr |
| Max Affordable Home | $217,001 |
$14,700
$3,376/mo
Phoenix Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $420,000 | Phoenix city median |
| Down Payment (20%) | $84,000 | Conventional loan |
| Monthly PITI | $2,633 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $112,838 | Annual gross |
| Max Affordable Home | $217,001 | Based on median income |
| FHA Down (3.5%) | $14,700 | Minimum FHA |
| Housing Cost % of Income | 47.2% | Median income: $67,000/yr |
| Property Tax Rate | 0.7% | $2,940/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Phoenix is $420,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $336,000, generating a monthly P&I payment of $2,213. Adding property taxes ($245/mo) and homeowners insurance ($175/mo) brings total monthly PITI to $2,633.
Phoenix's property tax rate of 0.7% is among the lower rates in the country, which improves overall affordability by keeping total PITI closer to the principal and interest payment alone. On the Phoenix median home, that is $245/month, or $2,940 per year.
Arizona levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Phoenix should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Phoenix's median income of $67,000/year can afford up to $1,563/month in total housing costs. Based on Phoenix's mortgage rate of 6.9% and property tax rate of 0.7%, that translates to a maximum affordable home price of approximately $217,001 with 20% down on a 30-year loan.
To afford the median Phoenix home priced at $420,000, you need an annual gross income of approximately $112,838. Total monthly housing costs (principal and interest of $2,213, property taxes of $245, and insurance of $175) come to $2,633/month, which equals 28% of the required income.
At the median home price of $420,000 and median household income of $67,000, the total monthly housing cost of $2,633 represents 47.2% of gross monthly income. This is well above the standard 28% threshold, making Phoenix a challenging market for buyers at median income.
A conventional 20% down payment on the median Phoenix home of $420,000 is $84,000. An FHA loan requires just 3.5% down — $14,700 — but adds mortgage insurance of roughly $287/month, bringing total FHA payments to $3,376/month.