CALCMONEY // HOME AFFORDABILITY // MI
Find out how much home you can afford in Michigan using local median home prices, current mortgage rates, and MI-specific property tax data.
Open Full Calculator$269,576
$1,780/mo
$252,098
$76,280/yr
| Median Home Price | $269,576 |
| Down Payment (20%) | $53,915 |
| Loan Amount | $215,661 |
| Monthly PI Payment | $1,400 |
| Monthly Property Tax | $267 |
| Monthly Insurance Est. | $112 |
| Total Monthly PITI | $1,780 |
| Required Gross Income (28% rule) | $76,280/yr |
| Max Affordable Price (28% rule) | $252,098 |
$9,435
$2,253/mo
Michigan Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $269,576 | State median |
| Down Payment (20%) | $53,915 | Conventional |
| Monthly PITI (median home) | $1,780 | 6.76% rate |
| Required Income (28% rule) | $76,280 | Annual gross |
| Max Affordable Home | $252,098 | Based on median income |
| FHA Down Payment (3.5%) | $9,435 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Michigan is $269,576, with a current 30-year fixed mortgage rate of 6.76%. A buyer putting 20% down on the median home would carry a loan of $215,661, resulting in a monthly principal and interest payment of $1,400. Once property taxes and insurance are added, total monthly housing costs reach $1,780.
Property taxes in Michigan average 1.19%, near the national average of 1.1%. On the median Michigan home, property taxes add $267/month to total housing costs.
Michigan levies a state income tax of 4.25% flat, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Michigan state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Michigan's median income of $72,389/year can afford up to $1,689/month in total housing costs (principal, interest, taxes, and insurance). Based on Michigan's current mortgage rate of 6.76% and property tax rate of 1.19%, that translates to a maximum affordable home price of approximately $252,098 with 20% down on a 30-year loan.
To comfortably afford the median Michigan home priced at $269,576, you need an annual gross income of approximately $76,280. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,400, property taxes of $267, and insurance of $112) come to $1,780/month, which should not exceed 28% of your gross monthly income.
Michigan's average property tax rate is 1.19%, which is above the national average of 1.1%. On the median Michigan home of $269,576, that means annual property taxes of $3,208, or $267/month. Because lenders include property taxes in your debt-to-income calculation, Michigan'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 Michigan home of $269,576, that is $9,435. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($53,915 on the median Michigan home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Michigan-specific minimum down payment requirements beyond federal guidelines.