CALCMONEY // HOME AFFORDABILITY // TX // ADDISON
How much house can you afford in Addison? Based on local median home prices, current TX mortgage rates, and Addison property tax data.
$580,000
$4,361/mo
$186,896/yr
$230,603
Monthly housing costs of $4,361 represent 48.5% of Addison's median gross monthly income ($9,000/mo). At 48.5%, median-income buyers in Addison are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $580,000 |
| Down Payment (20%) | $116,000 |
| Loan Amount | $464,000 |
| Monthly PI Payment | $3,056 |
| Monthly Property Tax | $1,063 |
| Monthly Insurance Est. | $242 |
| Total Monthly PITI | $4,361 |
| Housing Cost % of Income | 48.5% |
| Required Income (28% rule) | $186,896/yr |
| Max Affordable Home | $230,603 |
$20,300
$5,388/mo
Addison Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $580,000 | Addison city median |
| Down Payment (20%) | $116,000 | Conventional loan |
| Monthly PITI | $4,361 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $186,896 | Annual gross |
| Max Affordable Home | $230,603 | Based on median income |
| FHA Down (3.5%) | $20,300 | Minimum FHA |
| Housing Cost % of Income | 48.5% | Median income: $108,000/yr |
| Property Tax Rate | 2.2% | $12,760/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Addison is $580,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $464,000, generating a monthly P&I payment of $3,056. Adding property taxes ($1,063/mo) and homeowners insurance ($242/mo) brings total monthly PITI to $4,361.
Addison's property tax rate of 2.2% is notably high, meaningfully reducing how much home buyers can afford — lenders factor this directly into debt-to-income calculations. On the Addison median home, that is $1,063/month, or $12,760 per year.
Texas has no state income tax, improving effective take-home pay for Addison residents and giving buyers additional capacity relative to equally-priced homes in high-tax states.
Using the 28% rule, a household earning Addison's median income of $108,000/year can afford up to $2,520/month in total housing costs. Based on Addison's mortgage rate of 6.9% and property tax rate of 2.2%, that translates to a maximum affordable home price of approximately $230,603 with 20% down on a 30-year loan.
To afford the median Addison home priced at $580,000, you need an annual gross income of approximately $186,896. Total monthly housing costs (principal and interest of $3,056, property taxes of $1,063, and insurance of $242) come to $4,361/month, which equals 28% of the required income.
At the median home price of $580,000 and median household income of $108,000, the total monthly housing cost of $4,361 represents 48.5% of gross monthly income. This is well above the standard 28% threshold, making Addison a challenging market for buyers at median income.
A conventional 20% down payment on the median Addison home of $580,000 is $116,000. An FHA loan requires just 3.5% down — $20,300 — but adds mortgage insurance of roughly $396/month, bringing total FHA payments to $5,388/month.