CALCMONEY // HOME AFFORDABILITY // AZ // TEMPE
How much house can you afford in Tempe? Based on local median home prices, current AZ mortgage rates, and Tempe property tax data.
$460,000
$2,872/mo
$123,092/yr
$216,020
Monthly housing costs of $2,872 represent 50.7% of Tempe's median gross monthly income ($5,667/mo). At 50.7%, median-income buyers in Tempe are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $460,000 |
| Down Payment (20%) | $92,000 |
| Loan Amount | $368,000 |
| Monthly PI Payment | $2,424 |
| Monthly Property Tax | $257 |
| Monthly Insurance Est. | $192 |
| Total Monthly PITI | $2,872 |
| Housing Cost % of Income | 50.7% |
| Required Income (28% rule) | $123,092/yr |
| Max Affordable Home | $216,020 |
$16,100
$3,686/mo
Tempe Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $460,000 | Tempe city median |
| Down Payment (20%) | $92,000 | Conventional loan |
| Monthly PITI | $2,872 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $123,092 | Annual gross |
| Max Affordable Home | $216,020 | Based on median income |
| FHA Down (3.5%) | $16,100 | Minimum FHA |
| Housing Cost % of Income | 50.7% | Median income: $68,000/yr |
| Property Tax Rate | 0.67% | $3,082/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Tempe is $460,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $368,000, generating a monthly P&I payment of $2,424. Adding property taxes ($257/mo) and homeowners insurance ($192/mo) brings total monthly PITI to $2,872.
Tempe's property tax rate of 0.67% 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 Tempe median home, that is $257/month, or $3,082 per year.
Arizona levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Tempe 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 Tempe's median income of $68,000/year can afford up to $1,587/month in total housing costs. Based on Tempe's mortgage rate of 6.9% and property tax rate of 0.67%, that translates to a maximum affordable home price of approximately $216,020 with 20% down on a 30-year loan.
To afford the median Tempe home priced at $460,000, you need an annual gross income of approximately $123,092. Total monthly housing costs (principal and interest of $2,424, property taxes of $257, and insurance of $192) come to $2,872/month, which equals 28% of the required income.
At the median home price of $460,000 and median household income of $68,000, the total monthly housing cost of $2,872 represents 50.7% of gross monthly income. This is well above the standard 28% threshold, making Tempe a challenging market for buyers at median income.
A conventional 20% down payment on the median Tempe home of $460,000 is $92,000. An FHA loan requires just 3.5% down — $16,100 — but adds mortgage insurance of roughly $314/month, bringing total FHA payments to $3,686/month.