Affordability Index Calculator

Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend.

Affordability Index Calculator

Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend.

Median income($)

Median home price($)

Mortgage rate(%)

Enter values above and click Calculate — results will appear here with the formula explained.

Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median income / qualifying*100

How does this work?

Affordability index 100 means median income qualifies for median home at 20% down, 28% front-end. Above 100 more affordable, below less.

NAR index uses similar. This is city-level, not individual.

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Disclaimer: Results are estimates for informational purposes only and do not constitute professional financial advice. Consult a qualified professional for decisions.

What is Affordability Index?

Affordability index 100 means median income qualifies for median home at 20% down, 28% front-end. Above 100 more affordable, below less. Formula: Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median income / qualifying*100

Quick Answer

Affordability Index Calculator computes calculate housing affordability index from income, home price and rates — see index, months of income needed and trend. Formula: Qualifying income = PITI*12/0. Example: With $75k income, $400k price, 6.

What it does: Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend.
Formula: Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median income / qualifying*100
Inputs: Median income ($) · Median home price ($) · Mortgage rate (%)
Example: With $75k income, $400k price, 6.

Calculator Inputs at a Glance

Field	What to enter
Median income ($)	e.g. 75000
Median home price ($)	e.g. 400000
Mortgage rate (%)	e.g. 6.5

All fields use the exact formulas shown below — results include step-by-step breakdowns you can verify by hand.

How to Use This Calculator

1Enter median income, median home price and mortgage rate.
2Calculate to see affordability index and qualifying income.
3Index 120 means 20% more income than needed.

Formula Used

Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median income / qualifying*100

Affordability index 100 means median income qualifies for median home at 20% down, 28% front-end. Above 100 more affordable, below less.

NAR index uses similar. This is city-level, not individual.

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Worked Example

With $75k income, $400k price, 6.5% rate, 20% down: PITI $2,022, qualifying $86,657, index 86.5 — less affordable.

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Frequently Asked Questions

QWhat is 100?

100 = median income qualifies. 120 = 20% more than needed.

QWhy 28%?

Front-end DTI 28% is traditional qualifying.

Q20% down?

Assumes 20% down to avoid PMI. Less down lowers index.

Quick Answer

What it does: Calculate housing affordability index from income, home price and rates — see index, months of income needed and trend.

Formula: Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median income / qualifying*100

Inputs: Median income ($) · Median home price ($) · Mortgage rate (%)

Example: With $75k income, $400k price, 6.

Field

What to enter

Median income ($)

e.g. 75000

Median home price ($)

e.g. 400000

Mortgage rate (%)

e.g. 6.5

Formula Used

Qualifying income = PITI*12/0.28 where PITI is loan payment at 20% down; Index = median income / qualifying*100

Affordability index 100 means median income qualifies for median home at 20% down, 28% front-end. Above 100 more affordable, below less.

NAR index uses similar. This is city-level, not individual.