CALCMONEY // HOME AFFORDABILITY // TN // MEMPHIS
How much house can you afford in Memphis? Based on local median home prices, current TN mortgage rates, and Memphis property tax data.
$200,000
$1,265/mo
$54,233/yr
$172,398
Monthly housing costs of $1,265 represent 31.6% of Memphis's median gross monthly income ($4,000/mo). At 31.6%, this slightly exceeds the 28% rule. Buyers need above-median income or a 25%+ down payment to qualify comfortably.
| Median Home Price | $200,000 |
| Down Payment (20%) | $40,000 |
| Loan Amount | $160,000 |
| Monthly PI Payment | $1,054 |
| Monthly Property Tax | $128 |
| Monthly Insurance Est. | $83 |
| Total Monthly PITI | $1,265 |
| Housing Cost % of Income | 31.6% |
| Required Income (28% rule) | $54,233/yr |
| Max Affordable Home | $172,398 |
$7,000
$1,619/mo
Memphis Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $200,000 | Memphis city median |
| Down Payment (20%) | $40,000 | Conventional loan |
| Monthly PITI | $1,265 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $54,233 | Annual gross |
| Max Affordable Home | $172,398 | Based on median income |
| FHA Down (3.5%) | $7,000 | Minimum FHA |
| Housing Cost % of Income | 31.6% | Median income: $48,000/yr |
| Property Tax Rate | 0.77% | $1,540/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Memphis is $200,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $160,000, generating a monthly P&I payment of $1,054. Adding property taxes ($128/mo) and homeowners insurance ($83/mo) brings total monthly PITI to $1,265.
Memphis's property tax rate of 0.77% 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 Memphis median home, that is $128/month, or $1,540 per year.
Tennessee has no state income tax, improving effective take-home pay for Memphis residents and giving buyers additional capacity relative to equally-priced homes in high-tax states.
Using the 28% rule, a household earning Memphis's median income of $48,000/year can afford up to $1,120/month in total housing costs. Based on Memphis's mortgage rate of 6.9% and property tax rate of 0.77%, that translates to a maximum affordable home price of approximately $172,398 with 20% down on a 30-year loan.
To afford the median Memphis home priced at $200,000, you need an annual gross income of approximately $54,233. Total monthly housing costs (principal and interest of $1,054, property taxes of $128, and insurance of $83) come to $1,265/month, which equals 28% of the required income.
At the median home price of $200,000 and median household income of $48,000, the total monthly housing cost of $1,265 represents 31.6% of gross monthly income. This slightly exceeds the standard 28% rule. Buyers will need above-median income or a larger down payment to stay within guidelines.
A conventional 20% down payment on the median Memphis home of $200,000 is $40,000. An FHA loan requires just 3.5% down — $7,000 — but adds mortgage insurance of roughly $137/month, bringing total FHA payments to $1,619/month.
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