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.

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.

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.

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.