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

To afford the median Memphis home ($210,000) at standard 36% DTI with 6.7% mortgage rate and 20% down, you need approximately $53,000/year. The city median household income is $47,000, creating a gap of $6,000/year.

What percentage of Memphis homes are affordable on median income?

Based on FRC analysis using BLS income data and Zillow home prices (May 2026), approximately 62% of Memphis homes are affordable on the median household income of $47,000/year.

FRC City Analysis · May 2026

Memphis, TN
Housing Affordability

MODERATE — 62% of homes affordable

Memphis has among the lowest home prices of any major US city. Even on median income, 62% of homes are affordable. The tradeoff: lower wages and a challenging economic environment.

$210,000

Median Home Price

$1,340/mo

Monthly PITI (20% down)

$53,000

Income Needed (36% DTI)

$47,000

Median Household Income

+$6,000

Annual Income Gap

62%

Homes Affordable on Median

The Math

At today's 6.7% mortgage rate with 20% down, the monthly PITI on Memphis's median home is $1,340. To keep housing under 36% of gross income (the back-end DTI threshold most lenders use), you need $53,000/year — 113% of the city's median income.

The local median income of $47,000 leaves a gap of $6,000/year. This means the median household needs to earn 13% more to comfortably qualify for the median home.

Affordable Alternatives

📍 Nearest affordable areas: Germantown, Collierville, Bartlett
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 Memphis → ← All Cities

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

Memphis, TNHousing Affordability

The Math

Affordable Alternatives

Memphis, TN
Housing Affordability