CALCMONEY // HOME AFFORDABILITY // IL // CHICAGO
How much house can you afford in Chicago? Based on local median home prices, current IL mortgage rates, and Chicago property tax data.
$295,000
$2,196/mo
$94,133/yr
$166,633
Monthly housing costs of $2,196 represent 40.5% of Chicago's median gross monthly income ($5,417/mo). At 40.5%, median-income buyers in Chicago are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $295,000 |
| Down Payment (20%) | $59,000 |
| Loan Amount | $236,000 |
| Monthly PI Payment | $1,562 |
| Monthly Property Tax | $511 |
| Monthly Insurance Est. | $123 |
| Total Monthly PITI | $2,196 |
| Housing Cost % of Income | 40.5% |
| Required Income (28% rule) | $94,133/yr |
| Max Affordable Home | $166,633 |
$10,325
$2,720/mo
Chicago Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $295,000 | Chicago city median |
| Down Payment (20%) | $59,000 | Conventional loan |
| Monthly PITI | $2,196 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $94,133 | Annual gross |
| Max Affordable Home | $166,633 | Based on median income |
| FHA Down (3.5%) | $10,325 | Minimum FHA |
| Housing Cost % of Income | 40.5% | Median income: $65,000/yr |
| Property Tax Rate | 2.08% | $6,136/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Chicago is $295,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $236,000, generating a monthly P&I payment of $1,562. Adding property taxes ($511/mo) and homeowners insurance ($123/mo) brings total monthly PITI to $2,196.
Chicago's property tax rate of 2.08% is notably high, meaningfully reducing how much home buyers can afford — lenders factor this directly into debt-to-income calculations. On the Chicago median home, that is $511/month, or $6,136 per year.
Illinois levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Chicago 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 Chicago's median income of $65,000/year can afford up to $1,517/month in total housing costs. Based on Chicago's mortgage rate of 6.95% and property tax rate of 2.08%, that translates to a maximum affordable home price of approximately $166,633 with 20% down on a 30-year loan.
To afford the median Chicago home priced at $295,000, you need an annual gross income of approximately $94,133. Total monthly housing costs (principal and interest of $1,562, property taxes of $511, and insurance of $123) come to $2,196/month, which equals 28% of the required income.
At the median home price of $295,000 and median household income of $65,000, the total monthly housing cost of $2,196 represents 40.5% of gross monthly income. This is well above the standard 28% threshold, making Chicago a challenging market for buyers at median income.
A conventional 20% down payment on the median Chicago home of $295,000 is $59,000. An FHA loan requires just 3.5% down — $10,325 — but adds mortgage insurance of roughly $202/month, bringing total FHA payments to $2,720/month.