CALCMONEY // HOME AFFORDABILITY // AZ
Find out how much home you can afford in Arizona using local median home prices, current mortgage rates, and AZ-specific property tax data.
Open Full Calculator$395,000
$2,450/mo
$221,872
$104,993/yr
| Median Home Price | $395,000 |
| Down Payment (20%) | $79,000 |
| Loan Amount | $316,000 |
| Monthly PI Payment | $2,081 |
| Monthly Property Tax | $204 |
| Monthly Insurance Est. | $165 |
| Total Monthly PITI | $2,450 |
| Required Gross Income (28% rule) | $104,993/yr |
| Max Affordable Price (28% rule) | $221,872 |
$13,825
$3,149/mo
Arizona Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $395,000 | State median |
| Down Payment (20%) | $79,000 | Conventional |
| Monthly PITI (median home) | $2,450 | 6.9% rate |
| Required Income (28% rule) | $104,993 | Annual gross |
| Max Affordable Home | $221,872 | Based on median income |
| FHA Down Payment (3.5%) | $13,825 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Arizona is $395,000, with a current 30-year fixed mortgage rate of 6.9%. A buyer putting 20% down on the median home would carry a loan of $316,000, resulting in a monthly principal and interest payment of $2,081. Once property taxes and insurance are added, total monthly housing costs reach $2,450.
Property taxes in Arizona average 0.62%, well below the national average of 1.1%. On the median Arizona home, property taxes add $204/month to total housing costs.
Arizona levies a state income tax of 2.5% flat, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Arizona state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Arizona's median income of $65,900/year can afford up to $1,538/month in total housing costs (principal, interest, taxes, and insurance). Based on Arizona's current mortgage rate of 6.9% and property tax rate of 0.62%, that translates to a maximum affordable home price of approximately $221,872 with 20% down on a 30-year loan.
To comfortably afford the median Arizona home priced at $395,000, you need an annual gross income of approximately $104,993. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $2,081, property taxes of $204, and insurance of $165) come to $2,450/month, which should not exceed 28% of your gross monthly income.
Arizona's average property tax rate is 0.62%, which is well below the national average of 1.1%. On the median Arizona home of $395,000, that means annual property taxes of $2,449, or $204/month. Because lenders include property taxes in your debt-to-income calculation, Arizona'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 Arizona home of $395,000, that is $13,825. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($79,000 on the median Arizona home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Arizona-specific minimum down payment requirements beyond federal guidelines.