CALCMONEY // HOME AFFORDABILITY // NJ
Find out how much home you can afford in New Jersey using local median home prices, current mortgage rates, and NJ-specific property tax data.
Open Full Calculator$505,000
$3,933/mo
$148,811
$168,538/yr
| Median Home Price | $505,000 |
| Down Payment (20%) | $101,000 |
| Loan Amount | $404,000 |
| Monthly PI Payment | $2,674 |
| Monthly Property Tax | $1,048 |
| Monthly Insurance Est. | $210 |
| Total Monthly PITI | $3,933 |
| Required Gross Income (28% rule) | $168,538/yr |
| Max Affordable Price (28% rule) | $148,811 |
$17,675
$4,829/mo
New Jersey Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $505,000 | State median |
| Down Payment (20%) | $101,000 | Conventional |
| Monthly PITI (median home) | $3,933 | 6.95% rate |
| Required Income (28% rule) | $168,538 | Annual gross |
| Max Affordable Home | $148,811 | Based on median income |
| FHA Down Payment (3.5%) | $17,675 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in New Jersey is $505,000, with a current 30-year fixed mortgage rate of 6.95%. A buyer putting 20% down on the median home would carry a loan of $404,000, resulting in a monthly principal and interest payment of $2,674. Once property taxes and insurance are added, total monthly housing costs reach $3,933.
Property taxes in New Jersey average 2.49% — well above the national average of 1.1%. On the median New Jersey home, that adds $1,048/month to your housing costs, which lenders factor directly into your debt-to-income ratio.
New Jersey levies a state income tax of 1.4%–10.75%, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and New Jersey state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning New Jersey's median income of $87,700/year can afford up to $2,046/month in total housing costs (principal, interest, taxes, and insurance). Based on New Jersey's current mortgage rate of 6.95% and property tax rate of 2.49%, that translates to a maximum affordable home price of approximately $148,811 with 20% down on a 30-year loan.
To comfortably afford the median New Jersey home priced at $505,000, you need an annual gross income of approximately $168,538. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $2,674, property taxes of $1,048, and insurance of $210) come to $3,933/month, which should not exceed 28% of your gross monthly income.
New Jersey's average property tax rate is 2.49%, which is above the national average of 1.1%. On the median New Jersey home of $505,000, that means annual property taxes of $12,575, or $1,048/month. Because lenders include property taxes in your debt-to-income calculation, New Jersey's higher-than-average tax rate meaningfully reduces how much home you can afford.
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 New Jersey home of $505,000, that is $17,675. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($101,000 on the median New Jersey home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no New Jersey-specific minimum down payment requirements beyond federal guidelines.