CALCMONEY // HOME AFFORDABILITY // MI // ANN ARBOR
How much house can you afford in Ann Arbor? Based on local median home prices, current MI mortgage rates, and Ann Arbor property tax data.
$520,000
$3,750/mo
$160,730/yr
$129,038
Monthly housing costs of $3,750 represent 62.5% of Ann Arbor's median gross monthly income ($6,000/mo). At 62.5%, median-income buyers in Ann Arbor are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $520,000 |
| Down Payment (20%) | $104,000 |
| Loan Amount | $416,000 |
| Monthly PI Payment | $2,754 |
| Monthly Property Tax | $780 |
| Monthly Insurance Est. | $217 |
| Total Monthly PITI | $3,750 |
| Housing Cost % of Income | 62.5% |
| Required Income (28% rule) | $160,730/yr |
| Max Affordable Home | $129,038 |
$18,200
$4,674/mo
Ann Arbor Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $520,000 | Ann Arbor city median |
| Down Payment (20%) | $104,000 | Conventional loan |
| Monthly PITI | $3,750 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $160,730 | Annual gross |
| Max Affordable Home | $129,038 | Based on median income |
| FHA Down (3.5%) | $18,200 | Minimum FHA |
| Housing Cost % of Income | 62.5% | Median income: $72,000/yr |
| Property Tax Rate | 1.8% | $9,360/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Ann Arbor is $520,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $416,000, generating a monthly P&I payment of $2,754. Adding property taxes ($780/mo) and homeowners insurance ($217/mo) brings total monthly PITI to $3,750.
Ann Arbor's property tax rate of 1.8% is near the national average, adding a standard increment to monthly housing costs. On the Ann Arbor median home, that is $780/month, or $9,360 per year.
Michigan levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Ann Arbor 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 Ann Arbor's median income of $72,000/year can afford up to $1,680/month in total housing costs. Based on Ann Arbor's mortgage rate of 6.95% and property tax rate of 1.8%, that translates to a maximum affordable home price of approximately $129,038 with 20% down on a 30-year loan.
To afford the median Ann Arbor home priced at $520,000, you need an annual gross income of approximately $160,730. Total monthly housing costs (principal and interest of $2,754, property taxes of $780, and insurance of $217) come to $3,750/month, which equals 28% of the required income.
At the median home price of $520,000 and median household income of $72,000, the total monthly housing cost of $3,750 represents 62.5% of gross monthly income. This is well above the standard 28% threshold, making Ann Arbor a challenging market for buyers at median income.
A conventional 20% down payment on the median Ann Arbor home of $520,000 is $104,000. An FHA loan requires just 3.5% down — $18,200 — but adds mortgage insurance of roughly $355/month, bringing total FHA payments to $4,674/month.
Detroit
$185,000 median
MIGrand Rapids
$280,000 median
MILansing
$185,000 median
MIWarren
$168,000 median