CALCMONEY // HOME AFFORDABILITY // AL // TUSCALOOSA
How much house can you afford in Tuscaloosa? Based on local median home prices, current AL mortgage rates, and Tuscaloosa property tax data.
$225,000
$1,368/mo
$58,618/yr
$187,027
Monthly housing costs of $1,368 represent 32.8% of Tuscaloosa's median gross monthly income ($4,167/mo). At 32.8%, this slightly exceeds the 28% rule. Buyers need above-median income or a 25%+ down payment to qualify comfortably.
| Median Home Price | $225,000 |
| Down Payment (20%) | $45,000 |
| Loan Amount | $180,000 |
| Monthly PI Payment | $1,192 |
| Monthly Property Tax | $83 |
| Monthly Insurance Est. | $94 |
| Total Monthly PITI | $1,368 |
| Housing Cost % of Income | 32.8% |
| Required Income (28% rule) | $58,618/yr |
| Max Affordable Home | $187,027 |
$7,875
$1,767/mo
Tuscaloosa Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $225,000 | Tuscaloosa city median |
| Down Payment (20%) | $45,000 | Conventional loan |
| Monthly PITI | $1,368 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $58,618 | Annual gross |
| Max Affordable Home | $187,027 | Based on median income |
| FHA Down (3.5%) | $7,875 | Minimum FHA |
| Housing Cost % of Income | 32.8% | Median income: $50,000/yr |
| Property Tax Rate | 0.44% | $990/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Tuscaloosa is $225,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $180,000, generating a monthly P&I payment of $1,192. Adding property taxes ($83/mo) and homeowners insurance ($94/mo) brings total monthly PITI to $1,368.
Tuscaloosa's property tax rate of 0.44% 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 Tuscaloosa median home, that is $83/month, or $990 per year.
Alabama levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Tuscaloosa 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 Tuscaloosa's median income of $50,000/year can afford up to $1,167/month in total housing costs. Based on Tuscaloosa's mortgage rate of 6.95% and property tax rate of 0.44%, that translates to a maximum affordable home price of approximately $187,027 with 20% down on a 30-year loan.
To afford the median Tuscaloosa home priced at $225,000, you need an annual gross income of approximately $58,618. Total monthly housing costs (principal and interest of $1,192, property taxes of $83, and insurance of $94) come to $1,368/month, which equals 28% of the required income.
At the median home price of $225,000 and median household income of $50,000, the total monthly housing cost of $1,368 represents 32.8% 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 Tuscaloosa home of $225,000 is $45,000. An FHA loan requires just 3.5% down — $7,875 — but adds mortgage insurance of roughly $154/month, bringing total FHA payments to $1,767/month.
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