FiscalCalc

Home Affordability Calculator in California

In California, the median home costs $785K and the median household income is $84K/year. Find out how much house you can afford based on your income, debts, and down payment.

$785K
Median Home Price
$84K/yr
Median Income
15%
Avg Down Payment
151 / 100
Cost of Living
$

Before taxes — use your total household income

$

Car loans, student loans, credit cards, etc. — not utilities

$
%

How Much House Can You Afford in California?

Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With California's median income of $84,000/year ($7,000/month), that means a maximum housing payment of roughly $1,960/month.

At 6.72% over 30 years with a 15% down payment ($117,750), that monthly budget supports a purchase price of approximately $745,750–$785,000. The median home price in California is $785,000, which means housing is significantly more expensive than the national average.

Frequently Asked Questions — Home Affordability in California

How much house can I afford in California?+
With the median household income of $84,000 in California, the 28% housing rule allows a maximum monthly payment of $1,960. At 6.72% over 30 years with 15% down, that supports a purchase price of roughly $421K. The median home in California is $785K.
What is the median home price in California?+
The median home price in California is $785,000 (2026). Prices vary significantly by metro — urban areas typically run 20–50% above the state median, while rural areas may be well below. The cost of living index for California is 151 (100 = national average).
What income do I need to afford the median home in California?+
To afford the $785K median home in California with a 15% down payment ($117,750) and 6.72% rate (30 years), you need a gross annual income of at least $94,000 — following the 28% rule. The state median household income is $84,000.
What debt-to-income ratio do lenders require in California?+
Lenders in California (and nationwide) generally require a total DTI below 43% for conventional loans, with 36% preferred. FHA loans allow up to 50% DTI in some cases. This means your total monthly debt payments — mortgage, car loan, student loans, and credit cards — should not exceed 43% of your gross monthly income ($3,010 on the California median income).
How does California's cost of living affect home affordability?+
California has a cost of living index of 151 (100 = national average). Above-average living costs in California mean buyers should budget conservatively — utilities, groceries, and transportation add to total monthly housing burden.

Data Sources & Methodology

Median home prices from the National Association of Realtors (NAR). Median household income from U.S. Census Bureau ACS. Mortgage rates from Freddie Mac PMMS. Affordability calculations use the 28/36 DTI rule per Fannie Mae guidelines. Last updated 2026.

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Home Affordability by State

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