CALCMONEY // HOME AFFORDABILITY // MA // NEWTON
How much house can you afford in Newton? Based on local median home prices, current MA mortgage rates, and Newton property tax data.
$1,050,000
$5,868/mo
$251,470/yr
$496,433
Monthly housing costs of $5,868 represent 54.6% of Newton's median gross monthly income ($10,750/mo). At 54.6%, median-income buyers in Newton are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $1,050,000 |
| Down Payment (20%) | $210,000 |
| Loan Amount | $840,000 |
| Monthly PI Payment | $5,420 |
| Monthly Property Tax | $10 |
| Monthly Insurance Est. | $438 |
| Total Monthly PITI | $5,868 |
| Housing Cost % of Income | 54.6% |
| Required Income (28% rule) | $251,470/yr |
| Max Affordable Home | $496,433 |
$36,750
$7,703/mo
Newton Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $1,050,000 | Newton city median |
| Down Payment (20%) | $210,000 | Conventional loan |
| Monthly PITI | $5,868 | 6.7% rate, 30yr fixed |
| Required Income (28% rule) | $251,470 | Annual gross |
| Max Affordable Home | $496,433 | Based on median income |
| FHA Down (3.5%) | $36,750 | Minimum FHA |
| Housing Cost % of Income | 54.6% | Median income: $129,000/yr |
| Property Tax Rate | 0.0112% | $118/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Newton is $1,050,000, with a local 30-year mortgage rate of 6.7%. A buyer putting 20% down carries a loan of $840,000, generating a monthly P&I payment of $5,420. Adding property taxes ($10/mo) and homeowners insurance ($438/mo) brings total monthly PITI to $5,868.
Newton's property tax rate of 0.0112% 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 Newton median home, that is $10/month, or $118 per year.
Massachusetts levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Newton 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 Newton's median income of $129,000/year can afford up to $3,010/month in total housing costs. Based on Newton's mortgage rate of 6.7% and property tax rate of 0.0112%, that translates to a maximum affordable home price of approximately $496,433 with 20% down on a 30-year loan.
To afford the median Newton home priced at $1,050,000, you need an annual gross income of approximately $251,470. Total monthly housing costs (principal and interest of $5,420, property taxes of $10, and insurance of $438) come to $5,868/month, which equals 28% of the required income.
At the median home price of $1,050,000 and median household income of $129,000, the total monthly housing cost of $5,868 represents 54.6% of gross monthly income. This is well above the standard 28% threshold, making Newton a challenging market for buyers at median income.
A conventional 20% down payment on the median Newton home of $1,050,000 is $210,000. An FHA loan requires just 3.5% down — $36,750 — but adds mortgage insurance of roughly $718/month, bringing total FHA payments to $7,703/month.
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