How much do I need to earn to buy a house in Denver?

To afford the median Denver home ($560,000) at standard 36% DTI with 6.7% mortgage rate and 20% down, you need approximately $121,000/year. The city median household income is $75,000, creating a gap of $46,000/year.

What percentage of Denver homes are affordable on median income?

Based on FRC analysis using BLS income data and Zillow home prices (May 2026), approximately 28% of Denver homes are affordable on the median household income of $75,000/year.

FRC City Analysis · May 2026

Denver, CO
Housing Affordability

STRESSED — 28% of homes affordable

Denver's low property tax (0.55%) is a significant advantage. The same monthly payment that buys a $300K home in Texas buys a $450K home in Denver. Still stressed, but more manageable than coastal cities.

$560,000

Median Home Price

$3,381/mo

Monthly PITI (20% down)

$121,000

Income Needed (36% DTI)

$75,000

Median Household Income

+$46,000

Annual Income Gap

28%

Homes Affordable on Median

The Math

At today's 6.7% mortgage rate with 20% down, the monthly PITI on Denver's median home is $3,381. To keep housing under 36% of gross income (the back-end DTI threshold most lenders use), you need $121,000/year — 161% of the city's median income.

The local median income of $75,000 leaves a gap of $46,000/year. This means the median household needs to earn 61% more to comfortably qualify for the median home.

Affordable Alternatives

📍 Nearest affordable areas: Aurora, Lakewood, Thornton
These surrounding communities typically offer lower home prices within commuting distance.

See If You'd Qualify

These are market averages. Your situation depends on your income, debts, and credit.

🏦 Ask Zai About Denver → ← All Cities

Source: BLS OEWS 2024, Zillow ZHVI May 2026, FRC Underwriting Model. Not financial advice. Educational analysis only.

Denver, COHousing Affordability

The Math

Affordable Alternatives

Denver, CO
Housing Affordability