The Monthly Income Needed To Afford a Starter Home in America’s Biggest Cities
Starter homes are supposed to be the lower-cost way into homeownership, but in many major cities, even entry-level prices are much higher than the nationwide estimate. Zillow reported that the typical starter home nationwide was worth $198,649 as of June 2026, up 1.7% from a year earlier.
In some places, the problem is even bigger. Zillow found that a record 242 U.S. cities now have starter homes valued at $1 million or more, nearly triple the 80 cities that had reached that level before the pandemic. For its analysis, Zillow defined a starter home as a home in the lowest third of home values in a given region. To estimate what buyers need to earn, this list uses Zillow's bottom-tier home values for major metros as a starter-home price estimate.
Read This: 20 ZIP Codes First-Time Homebuyers Can Afford
See Next: Start Growing Your Net Worth With Smarter Tracking
Monthly payments are based on a 20% down payment, a 30-year fixed mortgage and a 6.47% mortgage rate, which Freddie Mac listed as the average 30-year fixed rate as of June 18, 2026. The monthly income needed is based on keeping the mortgage payment at no more than 30% of gross monthly income. These estimates also include property taxes, homeowners insurance and private mortgage insurance.
Let's explore the breakdown below.
Monthly Income Needed for a Starter Home
Here’s what homebuyers may need to earn each month to afford a starter home in 22 major U.S. metros. For comparison, full-time wage and salary workers had median weekly earnings of $1,233 in the first quarter of 2026, or about $5,343 per month when annualized, according to the U.S. Bureau of Labor Statistics data.
Metro | Starter-Home Value | Estimated Monthly Housing Payment | Monthly Income Needed |
Los Angeles | $670,483 | $5,512 | $18,373 |
Boston | $517,559 | $4,478 | $14,927 |
New York | $485,684 | $4,263 | $14,210 |
Washington | $379,539 | $3,545 | $11,817 |
Atlanta | $257,196 | $2,717 | $9,057 |
Chicago | $226,376 | $2,509 | $8,363 |
Dallas | $252,511 | $2,686 | $8,953 |
Houston | $209,756 | $2,397 | $7,990 |
Philadelphia | $230,379 | $2,536 | $8,453 |
Miami | $255,681 | $2,707 | $9,023 |
Phoenix | $330,995 | $3,217 | $10,723 |
San Francisco | $676,082 | $5,551 | $18,503 |
Riverside, California | $422,578 | $3,836 | $12,787 |
Seattle | $516,388 | $4,470 | $14,900 |
Minneapolis | $281,865 | $2,884 | $9,613 |
San Diego | $666,454 | $5,485 | $18,283 |
Tampa, Florida | $236,141 | $2,575 | $8,583 |
Denver | $404,479 | $3,714 | $12,380 |
Baltimore | $233,169 | $2,555 | $8,517 |
Orlando, Florida | $265,670 | $2,775 | $9,250 |
Charlotte, North Carolina | $257,739 | $2,721 | $9,070 |
Portland, Oregon | $416,187 | $3,793 | $12,643 |
Editor's note: Starter-home values were sourced from Zillow. Estimated monthly housing payments were calculated using a 20% down payment, a 30-year fixed mortgage and a 6.47% mortgage rate on U.S. Bank's mortgage payment calculator. Monthly income needed was calculated by dividing the mortgage payment by 0.30.
To help Americans navigate the added cost of summer, MoneyLion is giving away $1,000 every day through July 4. Enter the Summer Break Giveaway here (No pur. nec. Ends 7/4/26. See official rules at mlion.info/summerbreakofficialrules)
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: