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Data Sources &
Methodology

FinanceRateCalc is committed to transparency. Every number on this site comes from a verifiable source. Below is a complete breakdown of what we use, why, and how we calculate affordability.

Primary Data Sources

U.S. Bureau of Labor Statistics (BLS)
Occupational Employment and Wage Statistics (OEWS) — median annual wages by occupation and metropolitan area. Used for all profession-specific salary data (nurses, teachers, software engineers, etc.)
→ bls.gov/oes
U.S. Census Bureau — American Community Survey (ACS 2023)
Median household income by metro area, housing cost burden statistics, population demographics. Used for city-level income and demographic context.
→ census.gov/programs-surveys/acs
Zillow Home Value Index (ZHVI)
Median home values by ZIP code and metro area. Monthly updates. Used for all median home price figures.
→ zillow.com/research/data
Federal Reserve Economic Data (FRED)
30-year fixed mortgage rate averages, federal funds rate, economic indicators. Used for interest rate assumptions in all mortgage calculations.
→ fred.stlouisfed.org
HUD / FHA Official Guidelines
FHA loan limits, DTI thresholds, down payment requirements, MIP rates. Used for all FHA vs. conventional loan comparisons.
→ hud.gov
Fannie Mae / Freddie Mac Selling Guides
Conventional loan underwriting guidelines, DTI limits, LTV requirements. Used for conventional mortgage calculations.
→ fanniemae.com/research-and-insights
Walk Score
Walkability scores by neighborhood. Used as a lifestyle metric in city comparisons.
→ walkscore.com

How We Calculate Affordability

Monthly PITI Calculation

PITI = Principal + Interest + Taxes + Insurance. This is the standard lender calculation for total monthly housing cost.

Loan Amount = Home Price × (1 - Down Payment %)
Monthly Rate = Annual Rate ÷ 12
P&I = Loan × [r(1+r)³⁶⁰] ÷ [(1+r)³⁶⁰ - 1]
Property Tax = (Home Price × Annual Tax Rate) ÷ 12
Insurance = (Home Price × 0.5%) ÷ 12
PITI = P&I + Property Tax + Insurance

Debt-to-Income (DTI) Ratio

Front-End DTI = Monthly PITI ÷ Gross Monthly Income
Back-End DTI = (PITI + All Debt Payments) ÷ Gross Monthly Income

Conventional limit: 43-45% back-end
FHA limit: 50-57% with compensating factors

Default Assumptions

Interest Rate: 6.7% (30-year fixed, current market average)
Down Payment: 20% (unless otherwise specified)
Loan Term: 30 years
Insurance: 0.5% of home value annually
Property tax: City-specific rate from public records

Price-to-Income Ratio

Price-to-Income = Median Home Price ÷ Median Household Income
Historical healthy range: 3-5x
Current US average (2026): ~6.2x

What We Don't Do

We do not scrape, fabricate, or interpolate data without disclosure. All figures are either directly sourced from the agencies listed above or clearly labeled as estimates. When data is unavailable for a specific geography, we note it as an approximation.

Update Frequency

Mortgage rate assumptions are reviewed monthly. Home price data is updated quarterly using Zillow ZHVI. Salary data reflects the most recent BLS OEWS annual release. City-specific market trend data is updated as significant changes occur.

Important Disclaimer: All calculations are estimates for educational purposes only. Actual mortgage qualification depends on your specific credit score, debt load, lender overlays, and current market rates. FinanceRateCalc is not a lender and does not provide financial advice. Always consult a licensed mortgage professional for your specific situation.

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🔍 Also explore: All FRC Tools · Lender Comparison · FHA by State · Lender Stress Index

Open Datasets & Academic Record

FRC data is published as open datasets on Hugging Face under CC BY 4.0: FHA Denial Rates — Top 100 (2025) and The Denial-AI Benchmark v1, and FHA Denial Rates by Metro (320 MSAs), and FHA Denial Reason Fingerprints (100 lenders), FHA Denial Rates by State with loan-size splits, the 2018–2025 time series, and peer-adjusted denial rates. The benchmark's companion working paper is on SSRN (abstract 7156938). Researchers may reuse both with attribution.

Other public HMDA resources we recommend

We publish derived FHA statistics; these public tools are complementary and, for some questions, better:
FFIEC/CFPB HMDA Data Browser — the raw filings, filterable by institution and geography.
Home Mortgage Explorer (Federal Reserve Bank of Philadelphia) — interactive HMDA analysis, 2010–2024, with demographic and geographic breakdowns.
HMDA Lender File (Philadelphia Fed, the “Avery file”) — lender characteristics and parent-organization links, 1990–2024, essential for time-series work.
National Mortgage Database (FHFA) — representative loan-performance statistics.
Urban Institute Housing Finance Policy Center and Federal Reserve Bank of St. Louis — peer-reviewed and staff research on denial measurement and determinants.
For who-gets-denied questions by race and neighborhood, fair-housing research (e.g., The Markup's reporting, local fair-housing centers) measures a different and equally important axis than our door-level work.

All seven open datasets in one place: the data catalog →

The Denial Dispatch
One finding a week from the federal mortgage record.
One chart, three paragraphs, every Saturday. Measured, not assumed.
Get the Dispatch →
AI Accuracy Index The Door Effect The Denial Map Open Data About Press Newsletter
FinanceRateCalc · Independent analysis of the complete federal HMDA record · Measured, not assumed. · No lender or AI vendor funds or previews this work.