CALCMONEY // HOME AFFORDABILITY // MI // DETROIT
How much house can you afford in Detroit? Based on local median home prices, current MI mortgage rates, and Detroit property tax data.
$185,000
$1,433/mo
$61,411/yr
$81,845
Monthly housing costs of $1,433 represent 45.3% of Detroit's median gross monthly income ($3,167/mo). At 45.3%, median-income buyers in Detroit are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $185,000 |
| Down Payment (20%) | $37,000 |
| Loan Amount | $148,000 |
| Monthly PI Payment | $980 |
| Monthly Property Tax | $376 |
| Monthly Insurance Est. | $77 |
| Total Monthly PITI | $1,433 |
| Housing Cost % of Income | 45.3% |
| Required Income (28% rule) | $61,411/yr |
| Max Affordable Home | $81,845 |
$6,475
$1,761/mo
Detroit Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $185,000 | Detroit city median |
| Down Payment (20%) | $37,000 | Conventional loan |
| Monthly PITI | $1,433 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $61,411 | Annual gross |
| Max Affordable Home | $81,845 | Based on median income |
| FHA Down (3.5%) | $6,475 | Minimum FHA |
| Housing Cost % of Income | 45.3% | Median income: $38,000/yr |
| Property Tax Rate | 2.44% | $4,514/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Detroit is $185,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $148,000, generating a monthly P&I payment of $980. Adding property taxes ($376/mo) and homeowners insurance ($77/mo) brings total monthly PITI to $1,433.
Detroit's property tax rate of 2.44% is notably high, meaningfully reducing how much home buyers can afford — lenders factor this directly into debt-to-income calculations. On the Detroit median home, that is $376/month, or $4,514 per year.
Michigan levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Detroit 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 Detroit's median income of $38,000/year can afford up to $887/month in total housing costs. Based on Detroit's mortgage rate of 6.95% and property tax rate of 2.44%, that translates to a maximum affordable home price of approximately $81,845 with 20% down on a 30-year loan.
To afford the median Detroit home priced at $185,000, you need an annual gross income of approximately $61,411. Total monthly housing costs (principal and interest of $980, property taxes of $376, and insurance of $77) come to $1,433/month, which equals 28% of the required income.
At the median home price of $185,000 and median household income of $38,000, the total monthly housing cost of $1,433 represents 45.3% of gross monthly income. This is well above the standard 28% threshold, making Detroit a challenging market for buyers at median income.
A conventional 20% down payment on the median Detroit home of $185,000 is $37,000. An FHA loan requires just 3.5% down — $6,475 — but adds mortgage insurance of roughly $126/month, bringing total FHA payments to $1,761/month.
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