CALCMONEY // HOME AFFORDABILITY // NJ // MORRISTOWN
How much house can you afford in Morristown? Based on local median home prices, current NJ mortgage rates, and Morristown property tax data.
$850,000
$6,194/mo
$265,464/yr
$451,398
Monthly housing costs of $6,194 represent 42.5% of Morristown's median gross monthly income ($14,583/mo). At 42.5%, median-income buyers in Morristown are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $850,000 |
| Down Payment (20%) | $170,000 |
| Loan Amount | $680,000 |
| Monthly PI Payment | $4,501 |
| Monthly Property Tax | $1,339 |
| Monthly Insurance Est. | $354 |
| Total Monthly PITI | $6,194 |
| Housing Cost % of Income | 42.5% |
| Required Income (28% rule) | $265,464/yr |
| Max Affordable Home | $451,398 |
$29,750
$7,704/mo
Morristown Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $850,000 | Morristown city median |
| Down Payment (20%) | $170,000 | Conventional loan |
| Monthly PITI | $6,194 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $265,464 | Annual gross |
| Max Affordable Home | $451,398 | Based on median income |
| FHA Down (3.5%) | $29,750 | Minimum FHA |
| Housing Cost % of Income | 42.5% | Median income: $175,000/yr |
| Property Tax Rate | 1.89% | $16,065/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Morristown is $850,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $680,000, generating a monthly P&I payment of $4,501. Adding property taxes ($1,339/mo) and homeowners insurance ($354/mo) brings total monthly PITI to $6,194.
Morristown's property tax rate of 1.89% is near the national average, adding a standard increment to monthly housing costs. On the Morristown median home, that is $1,339/month, or $16,065 per year.
New Jersey levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Morristown 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 Morristown's median income of $175,000/year can afford up to $4,083/month in total housing costs. Based on Morristown's mortgage rate of 6.95% and property tax rate of 1.89%, that translates to a maximum affordable home price of approximately $451,398 with 20% down on a 30-year loan.
To afford the median Morristown home priced at $850,000, you need an annual gross income of approximately $265,464. Total monthly housing costs (principal and interest of $4,501, property taxes of $1,339, and insurance of $354) come to $6,194/month, which equals 28% of the required income.
At the median home price of $850,000 and median household income of $175,000, the total monthly housing cost of $6,194 represents 42.5% of gross monthly income. This is well above the standard 28% threshold, making Morristown a challenging market for buyers at median income.
A conventional 20% down payment on the median Morristown home of $850,000 is $170,000. An FHA loan requires just 3.5% down — $29,750 — but adds mortgage insurance of roughly $581/month, bringing total FHA payments to $7,704/month.
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