CALCMONEY // HOME AFFORDABILITY // AL // BIRMINGHAM
How much house can you afford in Birmingham? Based on local median home prices, current AL mortgage rates, and Birmingham property tax data.
$215,000
$1,302/mo
$55,783/yr
$198,334
Monthly housing costs of $1,302 represent 30.0% of Birmingham's median gross monthly income ($4,333/mo). At 30.0%, this slightly exceeds the 28% rule. Buyers need above-median income or a 25%+ down payment to qualify comfortably.
| Median Home Price | $215,000 |
| Down Payment (20%) | $43,000 |
| Loan Amount | $172,000 |
| Monthly PI Payment | $1,139 |
| Monthly Property Tax | $73 |
| Monthly Insurance Est. | $90 |
| Total Monthly PITI | $1,302 |
| Housing Cost % of Income | 30.0% |
| Required Income (28% rule) | $55,783/yr |
| Max Affordable Home | $198,334 |
$7,525
$1,683/mo
Birmingham Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $215,000 | Birmingham city median |
| Down Payment (20%) | $43,000 | Conventional loan |
| Monthly PITI | $1,302 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $55,783 | Annual gross |
| Max Affordable Home | $198,334 | Based on median income |
| FHA Down (3.5%) | $7,525 | Minimum FHA |
| Housing Cost % of Income | 30.0% | Median income: $52,000/yr |
| Property Tax Rate | 0.41% | $882/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Birmingham is $215,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $172,000, generating a monthly P&I payment of $1,139. Adding property taxes ($73/mo) and homeowners insurance ($90/mo) brings total monthly PITI to $1,302.
Birmingham's property tax rate of 0.41% is among the lower rates in the country, which improves overall affordability by keeping total PITI closer to the principal and interest payment alone. On the Birmingham median home, that is $73/month, or $882 per year.
Alabama levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Birmingham should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Birmingham's median income of $52,000/year can afford up to $1,213/month in total housing costs. Based on Birmingham's mortgage rate of 6.95% and property tax rate of 0.41%, that translates to a maximum affordable home price of approximately $198,334 with 20% down on a 30-year loan.
To afford the median Birmingham home priced at $215,000, you need an annual gross income of approximately $55,783. Total monthly housing costs (principal and interest of $1,139, property taxes of $73, and insurance of $90) come to $1,302/month, which equals 28% of the required income.
At the median home price of $215,000 and median household income of $52,000, the total monthly housing cost of $1,302 represents 30.0% of gross monthly income. This slightly exceeds the standard 28% rule. Buyers will need above-median income or a larger down payment to stay within guidelines.
A conventional 20% down payment on the median Birmingham home of $215,000 is $43,000. An FHA loan requires just 3.5% down — $7,525 — but adds mortgage insurance of roughly $147/month, bringing total FHA payments to $1,683/month.
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$185,000 median
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$195,000 median
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