Chicago's affordability is complicated by very high property taxes (2.13%). A $340K home costs $7,242/year in taxes. Despite lower home prices, true affordability is moderate — not as good as the sticker price suggests.
At today's 6.7% mortgage rate with 20% down, the monthly PITI on Chicago's median home is $2,500. To keep housing under 36% of gross income (the back-end DTI threshold most lenders use), you need $97,000/year — 149% of the city's median income.
The local median income of $65,000 leaves a gap of $32,000/year. This means the median household needs to earn 49% more to comfortably qualify for the median home.
These are market averages. Your situation depends on your income, debts, and credit.
🏦 Ask Zai About Chicago → ← All CitiesSource: BLS OEWS 2024, Zillow ZHVI May 2026, FRC Underwriting Model. Not financial advice. Educational analysis only.
Prices and salaries tell you what a house costs here. They do not tell you whether a lender will approve the loan.
A 26.2-point spread between the busiest FHA lenders here.
Loans under $150K denied at 50.9% versus 25.2% above $250K.
CFPB HMDA 2025, computed by FinanceRateCalc. Covers the highest-volume lenders published per market, not all lenders. Rates reflect applicant mix as well as lender practice — historical observations, not predictions. CC BY 4.0, not independently reproduced.