CALCMONEY // HOME AFFORDABILITY // AL
Find out how much home you can afford in Alabama using local median home prices, current mortgage rates, and AL-specific property tax data.
Open Full Calculator$232,000
$1,405/mo
$214,405
$60,193/yr
| Median Home Price | $232,000 |
| Down Payment (20%) | $46,400 |
| Loan Amount | $185,600 |
| Monthly PI Payment | $1,229 |
| Monthly Property Tax | $79 |
| Monthly Insurance Est. | $97 |
| Total Monthly PITI | $1,405 |
| Required Gross Income (28% rule) | $60,193/yr |
| Max Affordable Price (28% rule) | $214,405 |
$8,120
$1,816/mo
Alabama Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $232,000 | State median |
| Down Payment (20%) | $46,400 | Conventional |
| Monthly PITI (median home) | $1,405 | 6.95% rate |
| Required Income (28% rule) | $60,193 | Annual gross |
| Max Affordable Home | $214,405 | Based on median income |
| FHA Down Payment (3.5%) | $8,120 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Alabama is $232,000, with a current 30-year fixed mortgage rate of 6.95%. A buyer putting 20% down on the median home would carry a loan of $185,600, resulting in a monthly principal and interest payment of $1,229. Once property taxes and insurance are added, total monthly housing costs reach $1,405.
Property taxes in Alabama average 0.41%, well below the national average of 1.1%. On the median Alabama home, property taxes add $79/month to total housing costs.
Alabama levies a state income tax of 2%–5%, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Alabama state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Alabama's median income of $56,200/year can afford up to $1,311/month in total housing costs (principal, interest, taxes, and insurance). Based on Alabama's current mortgage rate of 6.95% and property tax rate of 0.41%, that translates to a maximum affordable home price of approximately $214,405 with 20% down on a 30-year loan.
To comfortably afford the median Alabama home priced at $232,000, you need an annual gross income of approximately $60,193. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,229, property taxes of $79, and insurance of $97) come to $1,405/month, which should not exceed 28% of your gross monthly income.
Alabama's average property tax rate is 0.41%, which is well below the national average of 1.1%. On the median Alabama home of $232,000, that means annual property taxes of $951, or $79/month. Because lenders include property taxes in your debt-to-income calculation, Alabama's property taxes have a relatively modest impact on overall affordability.
The minimum down payment depends on your loan type. For an FHA loan, you can put down as little as 3.5% — on the median Alabama home of $232,000, that is $8,120. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($46,400 on the median Alabama home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Alabama-specific minimum down payment requirements beyond federal guidelines.