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Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend.
Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend.
Enter values above and click Calculate — results will appear here with the formula explained.
Affordability index 100 means median income qualifies for median home at 20% down, 28% front-end. Above 100 more affordable, below less.
NAR index uses similar. This is city-level, not individual.
To use the Affordability Index Calculator, enter median income, median home price, mortgage rate above for an instant result with full breakdown and formula (Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median...). Adjust values live to compare scenarios, then check the worked example and FAQs below for practical tips and costly mistakes to avoid.
Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend. Formula: Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down.
Affordability index 100 means median income qualifies for median home at 20% down, 28% front-end. Above 100 more affordable, below less.
NAR index uses similar. This is city-level, not individual.
To use the Affordability Index Calculator, enter median income, median home price, mortgage rate above for an instant result with full breakdown and formula (Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median...). Adjust values live to compare scenarios, then check the worked example and FAQs below for practical tips and costly mistakes to avoid.
With $75k income, $400k price, 6.5% rate, 20% down: PITI $2,022, qualifying $86,657, index 86.5 — less affordable.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
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