CALCMONEY // HOME AFFORDABILITY // CA // MALIBU
How much house can you afford in Malibu? Based on local median home prices, current CA mortgage rates, and Malibu property tax data.
$4,200,000
$26,287/mo
$1,126,573/yr
$2,390,275
Monthly housing costs of $26,287 represent 43.8% of Malibu's median gross monthly income ($60,000/mo). At 43.8%, median-income buyers in Malibu are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $4,200,000 |
| Down Payment (20%) | $840,000 |
| Loan Amount | $3,360,000 |
| Monthly PI Payment | $22,017 |
| Monthly Property Tax | $2,520 |
| Monthly Insurance Est. | $1,750 |
| Total Monthly PITI | $26,287 |
| Housing Cost % of Income | 43.8% |
| Required Income (28% rule) | $1,126,573/yr |
| Max Affordable Home | $2,390,275 |
$147,000
$33,699/mo
Malibu Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $4,200,000 | Malibu city median |
| Down Payment (20%) | $840,000 | Conventional loan |
| Monthly PITI | $26,287 | 6.85% rate, 30yr fixed |
| Required Income (28% rule) | $1,126,573 | Annual gross |
| Max Affordable Home | $2,390,275 | Based on median income |
| FHA Down (3.5%) | $147,000 | Minimum FHA |
| Housing Cost % of Income | 43.8% | Median income: $720,000/yr |
| Property Tax Rate | 0.72% | $30,240/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Malibu is $4,200,000, with a local 30-year mortgage rate of 6.85%. A buyer putting 20% down carries a loan of $3,360,000, generating a monthly P&I payment of $22,017. Adding property taxes ($2,520/mo) and homeowners insurance ($1,750/mo) brings total monthly PITI to $26,287.
Malibu's property tax rate of 0.72% 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 Malibu median home, that is $2,520/month, or $30,240 per year.
California levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Malibu 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 Malibu's median income of $720,000/year can afford up to $16,800/month in total housing costs. Based on Malibu's mortgage rate of 6.85% and property tax rate of 0.72%, that translates to a maximum affordable home price of approximately $2,390,275 with 20% down on a 30-year loan.
To afford the median Malibu home priced at $4,200,000, you need an annual gross income of approximately $1,126,573. Total monthly housing costs (principal and interest of $22,017, property taxes of $2,520, and insurance of $1,750) come to $26,287/month, which equals 28% of the required income.
At the median home price of $4,200,000 and median household income of $720,000, the total monthly housing cost of $26,287 represents 43.8% of gross monthly income. This is well above the standard 28% threshold, making Malibu a challenging market for buyers at median income.
A conventional 20% down payment on the median Malibu home of $4,200,000 is $840,000. An FHA loan requires just 3.5% down — $147,000 — but adds mortgage insurance of roughly $2,871/month, bringing total FHA payments to $33,699/month.
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