CALCMONEY // HOME AFFORDABILITY // CA
Find out how much home you can afford in California using local median home prices, current mortgage rates, and CA-specific property tax data.
Open Full Calculator$785,000
$4,933/mo
$221,914
$211,403/yr
| Median Home Price | $785,000 |
| Down Payment (20%) | $157,000 |
| Loan Amount | $628,000 |
| Monthly PI Payment | $4,115 |
| Monthly Property Tax | $491 |
| Monthly Insurance Est. | $327 |
| Total Monthly PITI | $4,933 |
| Required Gross Income (28% rule) | $211,403/yr |
| Max Affordable Price (28% rule) | $221,914 |
$27,475
$6,318/mo
California Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $785,000 | State median |
| Down Payment (20%) | $157,000 | Conventional |
| Monthly PITI (median home) | $4,933 | 6.85% rate |
| Required Income (28% rule) | $211,403 | Annual gross |
| Max Affordable Home | $221,914 | Based on median income |
| FHA Down Payment (3.5%) | $27,475 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in California is $785,000, with a current 30-year fixed mortgage rate of 6.85%. A buyer putting 20% down on the median home would carry a loan of $628,000, resulting in a monthly principal and interest payment of $4,115. Once property taxes and insurance are added, total monthly housing costs reach $4,933.
Property taxes in California average 0.75%, near the national average of 1.1%. On the median California home, property taxes add $491/month to total housing costs.
California levies a state income tax of 1%–13.3%, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and California state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning California's median income of $84,900/year can afford up to $1,981/month in total housing costs (principal, interest, taxes, and insurance). Based on California's current mortgage rate of 6.85% and property tax rate of 0.75%, that translates to a maximum affordable home price of approximately $221,914 with 20% down on a 30-year loan.
To comfortably afford the median California home priced at $785,000, you need an annual gross income of approximately $211,403. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $4,115, property taxes of $491, and insurance of $327) come to $4,933/month, which should not exceed 28% of your gross monthly income.
California's average property tax rate is 0.75%, which is near the national average of 1.1%. On the median California home of $785,000, that means annual property taxes of $5,888, or $491/month. Because lenders include property taxes in your debt-to-income calculation, California'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 California home of $785,000, that is $27,475. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($157,000 on the median California home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no California-specific minimum down payment requirements beyond federal guidelines.