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

To afford the median Phoenix home ($420,000) at standard 36% DTI with 6.7% mortgage rate and 20% down, you need approximately $92,000/year. The city median household income is $65,000, creating a gap of $27,000/year.

What percentage of Phoenix homes are affordable on median income?

Based on FRC analysis using BLS income data and Zillow home prices (May 2026), approximately 38% of Phoenix homes are affordable on the median household income of $65,000/year.

FRC City Analysis · May 2026

Phoenix, AZ
Housing Affordability

STRESSED — 38% of homes affordable

Phoenix offers more affordability than most Sun Belt cities. Low property taxes (0.62%) and a growing inventory of newer homes make it one of the better markets for middle-income buyers.

$420,000

Median Home Price

$2,560/mo

Monthly PITI (20% down)

$92,000

Income Needed (36% DTI)

$65,000

Median Household Income

+$27,000

Annual Income Gap

38%

Homes Affordable on Median

The Math

At today's 6.7% mortgage rate with 20% down, the monthly PITI on Phoenix's median home is $2,560. To keep housing under 36% of gross income (the back-end DTI threshold most lenders use), you need $92,000/year — 142% of the city's median income.

The local median income of $65,000 leaves a gap of $27,000/year. This means the median household needs to earn 42% more to comfortably qualify for the median home.

Affordable Alternatives

📍 Nearest affordable areas: Mesa, Tempe, Gilbert
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 Phoenix → ← All Cities

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

Phoenix, AZHousing Affordability

The Math

Affordable Alternatives

Phoenix, AZ
Housing Affordability